EXPLAINER: How Russian crude oil could impact fuel supply in PH

A fresh shipment of crude oil from Russia has arrived in the Philippines, offering some relief as global supply tightens and fuel prices remain volatile.

The Department of Energy confirmed that an oil tanker carrying more than 700,000 barrels of crude oil has docked in Bataan. 

Energy Secretary Sharon Garin and Executive Secretary Ralph Recto both acknowledged the arrival on March 26, at a time when the country is looking beyond its usual suppliers due to the Middle East conflict.

Recto said the shipment had already reached Bataan, a key site for fuel processing.

From Russia to Bataan

Tracking data shows the tanker heading to Limay, Bataan, home to the country’s only oil refinery operated by Petron.

The crude oil reportedly came from Russia’s ESPO pipeline, which supplies markets across Asia.

So what exactly is crude oil? 

Crude oil is the unprocessed form of petroleum. It is a fossil fuel formed from the remains of marine plants and animals that lived millions of years ago. Over time, heat and pressure transformed these into liquid hydrocarbons trapped beneath layers of rock.

In simple terms, it is oil in its rawest state. It cannot be used yet for cars, planes, or cooking.

Why it still needs work?

Before it becomes something useful like gasoline or diesel, crude oil has to go through refining. This process breaks it down into different components and treats them to meet fuel standards.

That step matters for the Philippines because the country has only one working refinery. Most of the time, it imports already refined fuel instead of crude.

Since the global oil supply has been under pressure due to ongoing tensions in the Middle East and for a country that depends heavily on imports, even small disruptions can quickly affect prices and supply.

President Ferdinand Marcos Jr. said the government has been searching for alternative sources to keep fuel flowing.

“We are trying anything, everything to secure supply,” the President said, noting efforts to tap suppliers outside conflict-affected areas.

Garin also said more shipments are on the way, with orders continuing in the coming weeks.

Will this ease prices? Not immediately.

Fuel prices in the Philippines still follow global trends. Even if supply improves locally, international prices remain the biggest factor.

What this shipment can do is help ensure there is enough fuel in the system. It adds to the country’s buffer at a time when reserves are estimated to last around 45 days. —with research and information from the GMA Integrated News Feed/Sherylin Untalan/AOL, GMA Integrated News