MANILA — Maharlika Investment Corp. (MIC) has granted a ₱15 billion revolving credit facility to Petron Corp. This strategic move aims to reinforce the country’s energy security and support the operations of the Philippines’ only oil refinery amid continued volatility in global oil markets.
The short-term financing package, carrying prevailing market-based interest rates, is designed to bolster Petron’s liquidity as soaring crude prices drive up the cost of fuel and oil imports.
Under the terms of the agreement, the funds may be used solely for:
• The importation of crude oil
• The procurement of refined petroleum products
• Other related working capital requirements
Cushioning Financial Pressures
Petron, which supplies nearly one-third of the country’s fuel demand, posted a 56 percent decline in first-quarter net income to ₱1.8 billion due to elevated procurement costs and refinery shutdowns.
The company also faced supply chain disruptions linked to tensions in the Middle East. This prompted Petron to diversify its sourcing strategies, including a late-March acquisition of 2.48 million barrels of Russian Siberian crude to stabilize domestic inventories.
MIC President and CEO Rafael Consing Jr. highlighted that the facility directly addresses the growing financial burden faced by fuel distributors as oil prices remain elevated.
“The price of oil has risen to the point where distribution companies must double their working capital just to buy the same amount of fuel,” said Consing.
Consing added that the financing arrangement helps ensure fuel supply stability while enabling MIC to channel investments into a strategically critical sector of the economy.
Fortifying a Critical Pillar
According to MIC, the facility complements Petron’s existing financing lines and improves its flexibility in managing crude inventories.
Petron operates the country’s sole crude oil refinery in Bataan, positioning the company as a critical pillar in maintaining the steady flow of fuel supply for households, transportation, and industry nationwide. (Nexus News, Views & Features)
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