PH gains new access to Russian oil as price drops continue
The Philippines has gained new access to Russian crude and petroleum products after the United States granted an extension to Russia’s supply which it had sanctioned before the Iran war.
The local market is thus expected to receive a monthlong supply boost, as the country marks its third consecutive week of fuel price rollbacks on Tuesday.
In a briefing on Monday, Energy Undersecretary Alessandro Sales said the new waiver allowing the country to purchase Russian fuel is effective from April 17 to May 16. The last waiver lapsed on April 11.
Sales said the extension is “for everyone” and not exclusive to the Philippines.
Beyond usual suppliers
The United States and the European Union had imposed sanctions on Russia following its invasion of Ukraine in 2022.
The sanctions include banning imports of Russia’s crude oil and refined petroleum products. This had led to disruptions in diesel supply since Russia is a major fuel supplier.
After the Iran war broke out on Feb. 28, the Philippines has been aggressive in securing fresh deals beyond its usual suppliers.
The country received its first shipment of Russian crude on March 24, with the government confirming that Sierra Leone-flagged Sara Sky had arrived in Bataan province with more than 700,000 barrels consigned to Petron Corp., the Philippines’ only oil refiner.
But the company said it had acquired 2.48 million barrels of Russian crude to boost its stockpile until June.
According to government data, 97 percent of imports of liquid petroleum products—such as diesel, gasoline and kerosene—are from refineries in Asian countries. Petron gets 98 percent of its crude shipments from the Middle East.
New diesel shipments
Also on Monday, the Department of Energy said four government-secured diesel shipments, bringing a total of 178.33 million liters of diesel, have arrived in the country.
“As the Middle East conflict continues, our priority is to ensure that the Philippines remains prepared, adequately supplied, and able to respond swiftly to developments that may affect fuel availability and market stability,” Energy Secretary Sharon Garin said on Monday.
As of April 24, the country’s fuel inventory is enough for 54 days.
Garin also said fuel retailers should implement a price cut of at least P12.94 per liter for diesel starting April 28.
This means local diesel prices will drop anew to a range of P75.93 to P107.06 per liter in Metro Manila and other highly urbanized areas.
The estimated figures came from a high of as much as P170 per liter soon after the start of the Middle East war.
In the period of Feb. 24 to March 2, with the conflict only beginning to escalate, diesel prices in Metro Manila ranged from P48 to P73.61 per liter.
This week, kerosene will also decrease by at least P15.71 per liter. But gasoline prices inched up, if only by up to 53 centavos per liter.
Relief packages from Grab
Meanwhile, Grab Philippines said it is rolling out fuel assistance and incentive packages worth P350 million for its drivers and delivery partners.
The ride-hailing and delivery platform said on Monday the amount covers commission rebates, trip incentives, fuel discounts and subsidies aimed at cushioning the impact of higher oil prices that had followed after the Middle East war.
The company had earlier introduced bicycle subsidies for delivery riders seeking to transition to bike-based deliveries to reduce fuel expenses.
Depending on their performance tier, drivers and delivery partners may also qualify for grocery credits, fuel subsidies and medical vouchers, the company said.
Grab had also secured fuel discounts through tie-ups with oil companies at the height of the conflict in March.
Grab said the fuel support measures would remain in place as it continues to monitor fuel price movements and operating conditions.
“This is what a platform is for, and it is the role Grab intends to keep playing as the country navigates the fuel crisis,” the company said. —WITH A REPORT FROM LOGAN KAL-EL M. ZAPANTA
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