Shell ensures consistent refinery supplies

5 June 2022

While Russian fossil fuels are being phased out, Pilipinas Shell Petroleum Corp. (PSPC) says it has enough supply because its consistent refinery supplies sources acquire their crude oil from other producers.

PSPC takes advantage of its unique strength among industry competitors: its partnership and integration with the Shell Group network

“The Shell Group’s worldwide trade and supply team (which is based in Singapore for the East, which includes the Philippines) sources a consistent refinery supplies of high-quality fuels from numerous refineries. “Our final products are obtained from refineries that do not use Russian crude oil,” PSPC said in an email to The STAR.

“As one of the industry’s largest participants, Shell maintains a solid, trustworthy supply chain network – and to varied degrees, with secured long-term supplier relationships,” the company stated.

Shell indicated in a BBC report that it will continue to phase out Russian fossil fuels as Gazprom threatened to suspend gas supply to the German gas giant if it did not pay in rubles.

On Monday, European Union leaders decided to reduce Russia’s oil imports by 90% by the end of the year.

The EU’s Russian oil ban will affect all seaborne oil imports, which account for roughly two-thirds of total, but will not cover pipeline oil for the time being.

The crude import restriction will be phased in over six months and the refined product ban will be phased in over eight months once the bloc has completely adopted the deal.

According to Reuters, the EU-wide ban is the bloc’s strongest measure against Russia since the February invasion of Ukraine.

President of the European Council Charles Michel stated in a tweet that the ban will cut off “a big source of funding for its war machine” and put “maximum pressure on Russia to halt the war.”

The EU currently imports 27 percent of its oil and 40 percent of its gas from Russia.

Global oil prices rose to fresh highs on Tuesday following the EU announcement, with the impact expected to be felt in local pump prices next week

In collaboration with downstream oil sector players, the Department of Energy (DOE) has been actively monitoring global oil supply and price fluctuations.

Although the country’s supply is adequate, domestic prices continue to track higher worldwide market trends, according to the agency.