With nearly all of the country’s crude oil sourced from the Middle East, Senator Sherwin Gatchalian is pressing the Marcos administration to pursue direct diplomatic engagement with Iran to guarantee unimpeded access for Philippine-bound tankers through the Strait of Hormuz.
“I strongly urge the executive department to engage in high-level discussions with Iran to secure safe passage of Philippine-bound oil vessels through the Strait of Hormuz and ensure they are recognized as neutral entities,” Gatchalian said in a statement Saturday.
The senator’s call comes as Iran’s blockade of the strait—through which roughly one-fifth of global oil supply travels—has left close to 2,000 vessels stranded near the Persian Gulf’s main petroleum export route. Tehran has set five conditions for ending the war, one of which is international recognition of its authority over the waterway.
The Philippines imports 98 percent of its crude oil from the region, leaving the country significantly exposed to disruptions stemming from the conflict that followed last month’s US-Israel attack on Iran. Gatchalian had previously raised the need for government-to-government fuel procurement negotiations, arguing the situation exceeds what private companies can handle on their own.
“The government must stay ahead of the curve,” he said. “Strategic coordination and swift diplomatic action will go a long way in protecting our energy security and shielding our people from further economic strain.”
Malacañang did not immediately respond to the senator’s latest recommendation.
Iran has signaled that the strait remains open to all nations except the United States, Israel, and those that backed the attacks against it. The country has also been reported to be operating what the shipping journal Lloyd’s List described on March 25 as a “toll booth” system managed by the Islamic Revolutionary Guard Corps. Iranian lawmaker Alaeddin Boroujerdi told satellite channel Iran International that some vessels have been charged $2 million each for passage, with other accounts indicating payments are made in Chinese yuan.
Ships from several nations—including Malaysia, China, South Korea, Japan, and India—have reportedly been allowed through following talks with what Iran described as “friendly” countries.
While the Philippines is a US treaty ally, it has not participated in the military campaign against Iran. Energy Secretary Sharon Garin has said current domestic fuel stocks are sufficient for 40 to 45 days, a figure President Ferdinand Marcos Jr. echoed on Friday when he said supplies should hold through end-June. Marcos said he has directed the Department of Energy to lock in additional sources covering various fuel types, from gasoline and diesel to jet fuel and liquefied petroleum gas.
The DOE has finalized contracts through the Philippine National Oil Co. Exploration Corp. for the delivery of 1 million barrels of diesel—roughly five days’ worth of national consumption—with shipments expected in the coming weeks. The government has not disclosed its supplier partners, though officials have said they are canvassing options beyond Southeast Asia, including Japan, Canada, and the United States. The current target is 2 million barrels of diesel under a P20-billion allocation.
The country received its first government-procured diesel shipment earlier this week—about 22.57 million liters, or 142,000 barrels. Garin said these fresh supplies will be passed on to local fuel retailers at cost.
On Saturday, the DOE said it held energy supply discussions with China, describing the engagement as part of efforts to “strengthen cooperation and foster constructive relations between the Philippines and China in addressing energy-related challenges.”
Fuel prices are meanwhile expected to climb sharply. Based on the first four trading sessions, an industry source told reporters that diesel could rise by P11 to P12 per liter when new prices take effect on March 31—potentially pushing regular diesel above P140 per liter and premium diesel past P150. Gasoline is expected to see a more modest increase of around P3 per liter.
The Bureau of Customs, for its part, has issued directives to ports nationwide to prioritize processing of oil imports, with daily monitoring and fuel marking now in place. Customs Commissioner Ariel Nepomuceno noted that petroleum imports account for roughly P200 billion of the bureau’s annual collection, which totaled P934.4 billion last year. A vessel tracking system is also being used to monitor incoming fuel shipments and conduct inspections upon arrival.
