How Energy Reaches You
From oil fields in the Middle East to the gas station down your street — trace every step of the supply chain that powers the Philippines, and understand why pump prices move the way they do.
Supply Chain Flow
Crude Extraction
Zero Domestic Production
Crude oil is pumped from underground reservoirs in oil-producing countries. The Middle East (Saudi Arabia, UAE, Iraq) accounts for ~31% of global production.
Philippine Context
Philippines produces virtually zero crude oil domestically. The country imports 95% of its petroleum needs, primarily Dubai crude from the Middle East.
Maritime Transport
Two Chokepoints, One Lifeline
What happens here
Crude oil travels via supertankers (VLCCs carrying 2M barrels each) through critical chokepoints. A single disruption can spike global prices within hours.
Philippine Context
Philippine-bound crude passes through the Strait of Hormuz (35% of seaborne oil) and the Strait of Malacca before entering the South China Sea.
Key Players
Refinery Processing
One Refinery for 115 Million People
What happens here
Refineries heat crude oil to 400°C+ in distillation columns, separating it into gasoline, diesel, jet fuel, LPG, and other products. Each crude type yields different product ratios.
Philippine Context
Petron Bataan Refinery is the ONLY operating refinery in the Philippines (180,000 bpd capacity). All other fuel is imported as finished product from Singapore and South Korea.
Swipe to explore process steps
Distribution Terminals
Gateway Terminals Under Pressure
What happens here
Import terminals receive both crude oil (for Bataan) and finished petroleum products. Tank farms store fuel before distribution to regional depots.
Philippine Context
Major import terminals in Batangas, Subic, Limay, and Rosario handle the bulk of Philippine fuel imports. Terminal capacity determines how many days of supply the country holds.
Key Players
Local Depots
Island Logistics, Mainland Costs
What happens here
Regional depots receive fuel from terminals via pipeline, barge, or tanker truck. They serve as last-mile distribution hubs for gas stations in their area.
Philippine Context
The Philippines has ~50 depots nationwide. Island geography means many areas rely on inter-island barges, adding cost and vulnerability to weather disruptions.
Key Players
Gas Stations
10,469 Stations Mapped
What happens here
Retail outlets sell fuel to consumers. Station count and geographic coverage determine market accessibility. Prices vary by location due to transport costs.
Philippine Context
Over 10,000 gas stations nationwide across 7+ brands. Petron leads with ~2,400 stations, followed by Shell (~1,100) and Caltex (~600).
Key Players
Consumer Impact
Every Peso Ripples
Every ₱1 increase in pump price ripples through the entire economy — from jeepney fares to food delivery costs to cooking gas prices.
Philippine Context
Transport accounts for ~10% of household spending in the Philippines. A ₱5/liter diesel increase can raise jeepney minimum fare by ₱1–2 and food prices by 2–3%.
Crude Oil Benchmarks
Global oil prices are set by three key benchmarks. Understanding which one matters for the Philippines explains why our pump prices sometimes move differently from what you see in US-centric news.
Brent Crude
North Sea BenchmarkUsed globally as the primary price reference. Light, sweet crude (low sulfur content). Produced from North Sea oil fields. Brent sets the tone for roughly two-thirds of globally traded crude.
WTI
West Texas IntermediateThe US benchmark crude. Slightly lighter than Brent. Trades at a discount to Brent due to the US shale production surplus. Delivered at Cushing, Oklahoma.
Dubai/Oman Crude
Asia-Pacific BenchmarkPH ReferenceThe Middle East benchmark that matters most for Asia-Pacific. Medium, sour (higher sulfur). THIS is what Philippines prices are based on. When Dubai crude moves, Philippine pump prices follow within 2–3 weeks.
Crude Oil Properties
Light vs Heavy
Light crude yields more gasoline and diesel per barrel (more valuable). Heavy crude yields more fuel oil and asphalt (less valuable but cheaper to buy). API gravity above 31.1° is classified as light.
Sweet vs Sour
Sweet crude has low sulfur (<0.5%), making it easier and cheaper to refine. Sour crude has high sulfur, needing more processing. Dubai crude is sour, which is why Petron Bataan needs a special hydrodesulfurization unit.
Next
You've seen how oil reaches the Philippines. Now see what a price shock costs a family.
See the cost cascade →