PH gov't considering buying oil from Russia

As the country braces for another round of fuel price increases this week, with analysts estimating diesel could breach the PHP 100.00-per-liter mark, the Department of Foreign Affairs (DFA) said the government is considering sourcing oil from Russia, particularly now that sanctions have been temporarily lifted.

Foreign Affairs Secretary, Ma. Theresa Lazaro said the option is currently under consideration, but emphasized that the matter ultimately falls under the jurisdiction of the Department of Energy (DOE).

“That is something which is being considered, but I will leave this to the office, or rather to the Cabinet member in charge of this, and that is the Department of Energy,” Lazaro said.

The US has temporarily eased some sanctions on the delivery and sale of Russian crude oil and other petroleum products until April 11, aiming to help stabilize global oil prices amid the ongoing conflict in the Middle East.

Might not be cheaper

While it sounds good in theory, importing oil from Russia is more complicated in practice and might not end up cheaper for Juan dela Cruz.

Currently, the Philippines’ only working oil refinery in Bataan processes crude types mainly from the Middle East. Russian exports like Urals crude are a different grade and would need testing and careful planning before a refinery can use it efficiently.

There are also financial and regulatory hurdles. Even though the U.S. has temporarily allowed some Russian oil shipments already at sea, broad sanctions still affect banking, insurance, shipping, and documentation. These make deals more complex and can add cost.

Because of these factors, bringing in Russian crude might help diversify supply or cushion against disruptions, but it doesn’t automatically mean fuel prices at the pump will go down.