Petron to benefit most from safe Hormuz transit

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April 7, 2026 | 12:00am

MANILA, Philippines — Tycoon Ramon Ang’s Petron Corp. stands to benefit the most from Iran’s assurance of safe passage of Philippine-flagged vessels through the Strait of Hormuz, industry experts said.

While the Philippines sources most of its crude oil from the Middle East, the majority of its refined petroleum products come from other Asian countries.

In the Philippines, Petron is the only company operating an oil refinery and actively sourcing crude for domestic processing.

Other major firms like Shell and Caltex have ceased local crude refining and now operate solely as importers and distributors of refined products such as diesel and gasoline.

“So that (Iran’s guarantee) will probably benefit mainly Petron since they are the ones that import crude oil,” Peter U of the University of Asia and the Pacific told The STAR.

He added that the latest development also provides Petron with greater assurance of a steady crude supply.

Petron’s Bataan refinery can process 180,000 barrels of oil per day, supplying about one-third of the national fuel demand.

Since the US-Israel war with Iran erupted in late February, Petron has faced shipping constraints for an earlier order of two million barrels of crude, which could not safely transit the Strait of Hormuz.

A second shipment of two million barrels was subsequently canceled on March 7 due to heightened risks in the Strait and the Red Sea.

As a result, Petron turned to Russia for its crude supply, securing at least 2.48 million barrels.

If the war continues and alternative crude sources remain limited, Petron has floated plans to purchase Russian oil again to beef up the Philippines’ fuel buffer.

Economist and columnist Bienvenido Oplas Jr., however, noted that Petron’s refinery is designed for Middle East crude.

“Even if Petron gets more Russian oil, the domestic refinery might be less diesel and more gasoline,” Oplas said in a message to The STAR.

With Tehran’s guarantee of safe passage through the critical maritime chokepoint, Middle East crude is again expected to flow to the Philippines despite the ongoing global oil crisis.

The Department of Foreign Affairs (DFA) also clarified that no toll would be imposed on the transit amid reports that Iran plans to charge about $1 per barrel or roughly $2 million for each vessel.

“I assume this will benefit crude oil shipments of Petron more than the small players,” columnist Boo Chanco told The STAR, adding that there are also no Philippine-owned or flagged tankers.

The government, through Philippine National Oil Co., used to operate very large crude carriers, particularly in the late 1970s and 1980s when it still owned Petron.

“From the way I understand it, the cover given by Iran, as negotiated by the DFA, will benefit Petron mostly because it is the only one with a refinery that can process crude,” Chanco said.