PRESIDENT Ferdinand Marcos Jr. said that the Philippines has not reached an oil importation deal with Russia, citing geopolitical complexities that continued to shape discussions between the two countries.
Speaking to reporters in Kazan, Russia, on Thursday, Marcos said negotiations on a possible long-term petroleum supply arrangement remained ongoing.
“In terms of energy, there have been no firm agreements, but merely an understanding that we will continue to develop what we had already started in as a response to the oil crisis that was the effect of the war in the Middle East which we are hoping will come to an end soon,” Marcos said.
He added that Russian President Vladimir Putin “was very open to any kind of suggestion that we do increase that engagement and that we look further into supplying – getting our supplies of petroleum products from Russia.”
Marcos said the Philippines has been sourcing petroleum products from Russia on an “ad hoc basis” since the start of the global oil crisis that was triggered by the war in the Middle East in February.
“There was no real system in place. Now we are beginning to put that system in place, and I think it will be very good for the Philippines to have another assured lifeline when it comes to petroleum products,” he said.
Even if the war ends, the government will continue to look for “nontraditional” partners for its supply of petroleum products, the president said.
The war between the United States and Iran has forced the closure of the Strait of Hormuz, where roughly 20 percent of the world’s oil and liquefied natural gas imports pass through.
On June 20, Energy Secretary Sharon Garin said the Department of Energy seeks to launch an “aggressive” fuel transition plan meant to reduce the country’s reliance on imported oil.
Based on government data, 97 percent of liquid petroleum products — such as diesel, gasoline and kerosene — are imported from Asian refineries.
Despite the potential benefits of diversifying energy sources, the president acknowledged concerns that deeper economic engagement with Russia could draw criticism from countries opposed to Moscow’s military actions in Ukraine.
Marcos said the Philippines remained committed to promoting peace and does not want to be associated with activities that could be perceived as supporting armed conflict.
Marcos said the Philippines’ current trade volume with Russia, which is currently at $5 billion, remains relatively small and cannot realistically be viewed as a significant source of funding for any conflict.
The president also framed the discussions within the context of a changing global landscape, saying the Philippines is adapting to what many leaders now describe as a multipolar world.
He said countries are increasingly pursuing a wider range of economic partnerships rather than aligning exclusively with traditional power blocs.
“The traditional power structures and the traditional powers are no longer the powers that exist when, for example, the United Nations was formed right after the war. So we, the Philippines, is just responding, adjusting to the new reality,” Marcos said.
In a related development, diesel and gasoline prices are expected to drop significantly next week, as the global market reacts to the interim peace deal signed between US and Iran.
Local oil industry sources said on Friday diesel could go down by P7.50 to P9.50 per liter, and gasoline prices by P3 to P5 per liter.
Despite easing tensions in the Middle East, Senate President Sherwin Gatchalian on Friday said the Philippines must continue to address long-term energy security challenges, particularly its heavy dependence on imported fossil fuels.
“The Philippines needs to reduce its dependence on imported oil to protect the economy against any possible new oil crisis or sudden increase in oil prices. That’s why we must have a clear and sound energy transition plan,” Gatchalian said.
He renewed his call for the passage of Senate Bill 366, or the Energy Transition Act, which seeks to establish a comprehensive framework for the transition to cleaner and more sustainable energy sources.
The measure aims to accelerate the adoption of renewable and low-carbon energy technologies, lessen reliance on fossil fuels and define the responsibilities of government agencies in implementing transition policies for the transport and power sectors.
Gatchalian said a well-defined energy transition strategy would help shield the Philippine economy from global oil market volatility.
He underscored the environmental benefits of the proposed legislation, noting that it would support the country’s climate commitments under its Nationally Determined Contribution (NDC).
Under the NDC, the Philippines pledges to reduce and avoid greenhouse gas emissions by 75 percent from 2020 to 2030, subject to international support and financing.
Achieving this target will require significant investments in renewable energy, energy efficiency measures and the modernization of the country’s energy infrastructure.
Gatchalian said advancing the energy transition is not only an environmental imperative but also an economic necessity that can help ensure stable energy prices, attract green investments, create jobs in emerging industries and enhance the country’s resilience against future energy supply disruptions.
Energy experts have long advocated for greater investment in renewable energy sources such as solar, wind, hydro and geothermal power to improve energy independence and sustainability.
