Christy Balita
Research expert covering the Philippines
Oil industry in the Philippines - statistics & facts
Crude oil and other refined petroleum products, such as diesel and gasoline, play a vital role in producing electricity, fueling vehicles, and heating buildings. These products are also used as chemical raw materials in manufacturing essential items we use daily. In the Philippines, oil consumption was highest among other fuel types, especially within the transportation sector. However, due to lower production output, the Philippines imports crude oil and petroleum products to meet growing demand. Further explorations in the industry are needed to meet the demand for petroleum products and to minimize import dependency.
Meanwhile, refined petroleum products such as diesel, gasoline, and kerosene were primarily imported from South Korea, Singapore, and China in 2022. The Philippines also imported finished petroleum from Russia, although at a minimal amount. As for crude oil production, the oil refining capacity has stayed at 180,000 barrels per day since 2020. This was brought on by the closure of other refineries in recent years, leaving the Bataan Oil Refinery as the only working oil refinery in the country. As a result, petroleum refinery production declined in 2022 compared to the 2018 production volume. Due to market fluctuations and economic and political developments in oil-supplying countries, the retail price of gasoline and diesel fluctuated monthly, especially during the summer months of 2022.
Which countries supply oil to the Philippines?
Since 2018, the volume of proven oil reserves in the Philippines has consistently been 138.5 million barrels. This resulted in a significant decline in the volume of crude oil produced in the Philippines and a strong dependency on imports supplied by the Middle East, particularly from Saudi Arabia and UAE. In 2021, crude oil production was limited to the Galoc oil field in Palawan amid the decommissioning of other oil fields and the temporary shutdown of drilling operations on the Alegria oil field in Cebu.Meanwhile, refined petroleum products such as diesel, gasoline, and kerosene were primarily imported from South Korea, Singapore, and China in 2022. The Philippines also imported finished petroleum from Russia, although at a minimal amount. As for crude oil production, the oil refining capacity has stayed at 180,000 barrels per day since 2020. This was brought on by the closure of other refineries in recent years, leaving the Bataan Oil Refinery as the only working oil refinery in the country. As a result, petroleum refinery production declined in 2022 compared to the 2018 production volume. Due to market fluctuations and economic and political developments in oil-supplying countries, the retail price of gasoline and diesel fluctuated monthly, especially during the summer months of 2022.
Big Three dominates the Philippine oil market
The Philippine oil industry is currently dominated by the so-called “Big Three” petroleum companies, which hold a market share of about 42 percent of the total petroleum product demand. As of March 2023, Shell held the highest market share, followed closely by Petron. Shell was initially engaged in the refinery business but decided to close its refinery in 2020 to focus more on fuel imports. Petron Corporation, on the other hand, owns and operates the only operating oil refinery and claims to have the capacity to supply about 40 percent of the total fuel requirements. Finally, Chevron Philippines also decided to stop its refining operations to focus on imports due to the increasingly competitive marketplace. As of December 2022, there were 156 importers and about 26,000 retailers in the Philippines, according to the Energy Department.
