Philippines Collaborates with U.S. to Secure Oil from Sanctioned Nations

Philippines Navigates Energy Crisis with U.S. Collaboration

The Philippines is actively engaging with the United States to secure necessary waivers and exemptions that would enable it to obtain oil from countries under U.S. sanctions, ensuring a stable supply of fuel. This move comes as the country faces significant challenges due to the ongoing conflict in the Middle East, which has disrupted oil procurement.

National Energy Emergency Declaration

In response to the growing energy crisis, the Philippines declared a state of national energy emergency on Tuesday. The declaration aims to address the disruptions caused by the war in the Middle East and ensure that the country can maintain its fuel supply. The nation heavily relies on imported fuel, making it particularly vulnerable to global market fluctuations and geopolitical tensions.

Ambassador’s Statement on Waivers and Exemptions

Jose Manuel Romualdez, the Philippines’ ambassador to the United States, shared insights with Jendela Magazine regarding the efforts to secure these waivers. He mentioned that discussions are underway with the State Department to gain exemptions for purchasing oil from U.S.-sanctioned countries. When asked about the potential importation of oil from Venezuela and Iran, Romualdez stated that all options are being considered.

He also noted that the response from the State Department is still in progress, indicating that the process is ongoing and not yet finalized.

Fuel Supply and Government Actions

As of March 20, the government reported that the Philippines had approximately 45 days of fuel supply. To bolster this buffer, the country is procuring an additional 1 million barrels of oil. President Ferdinand Marcos Jr. addressed the public in a televised speech, assuring citizens that the fuel supply would not run out after the 45-day period. He emphasized that the government is exploring alternative sources that are not affected by the ongoing conflict.

Impact of Middle East Oil Imports

The Philippines imports almost all of its crude oil from the Middle East, with Saudi Arabia being the largest supplier. This dependency makes the country susceptible to oil price shocks and supply disruptions. The emergency declaration serves as a precautionary measure, allowing the government to be prepared for any future challenges.

Special Powers and Public Assurance

The emergency declaration, which will remain in effect for one year, grants the government special powers, including the ability to purchase fuel and petroleum products and pay a portion of the contract amount in advance. This ensures timely and sufficient supply. President Marcos urged the public not to panic, assuring them that the government is doing everything possible to alleviate the situation.

Protests and Temporary Measures

Despite these efforts, transport workers, commuters, and consumer groups are planning a two-day strike from Thursday to protest the increase in fuel prices and the administration’s perceived failure to act effectively. In response to energy supply pressures, Manila has temporarily increased coal-fired generation and allowed the limited use of cheaper but dirtier Euro II fuel to ensure supply.

Russian and Iranian Oil Shipments

At least two Russian ESPO crude cargoes are heading to the Philippines this month, while a cargo of Abu Dhabi Murban crude is expected to arrive at its Bataan terminal on April 8, according to Kpler data. This shipment marks the country’s first imports of Russian crude oil in five years, following a 30-day waiver issued by the United States.

Additionally, Washington issued a 30-day sanctions waiver for the purchase of Iranian oil already at sea. This waiver applies to oil loaded on any vessel on or before March 20 and discharged by April 19, including tankers under sanctions.