Business magnate Ramon S. Ang is viewing the situation in the Middle East not with alarm, but with precision and resolve, as he works with the national government in navigating the economic challenges that geopolitical tensions bring.
In a recent media interview, the leader of the San Miguel Corporation (SMC) explained how wars always affect the energy industry. He pointed out that modern conflicts increasingly target energy infrastructure, particularly oil refineries.
As he observed in the Russia-Ukraine War and latest tensions involving Iran and Gulf states, refinery damage directly reduces the global supply of finished fuel, making it harder and more expensive for countries to import gasoline and diesel.
This reality highlights a crucial economic distinction: importing crude oil versus finished petroleum products. For Ang, this is why refining capacity is not just an advantage for any country, but a necessity. The SMC, which operates Petron Corporation, has been running the lone oil refinery in the Philippines.
According to Ang, finished fuel—especially during shortages—carries steep premiums of up to 40 to 50 percent. Crude oil, by contrast, is significantly cheaper to procure with premiums typically ranging between 10 to 20 percent.
In the Philippines, the Petron Refinery in Limay, Bataan plays a critical role as it can supply around 30 to 35 percent of national demand. Ang described this as a vital cushion, enough to sustain essential activities while easing dependence on volatile global markets.
“Petron refinery will keep running dahil mas malaki ang chance para makabili ng crude oil kaysa finished product (because we have better chances of procuring crude oil than the finished product),” the SMC leader told reporters on March 27.
While securing adequate supply of raw materials remains a serious challenge under the circumstances, he is confident that the country will not run out of fuel, as long as consumers use it responsibly.
He echoed government appeals for the public to avoid panic buying and instead practice fuel conservation by limiting non-essential travel so that resources can be prioritized for public transport and emergency services. More importantly, he commits to not taking advantage of the crisis—even if it means reducing profits.
“I promise the public we will not take advantage of this fuel crisis. Hindi kami kikita nang mahigit pa sa (We will not earn more than what is) normal and I’m willing to even lower the income… You have my 100 percent cooperation na tutulungan ‘yung mga kababayan natin (that we will help our countrymen),” Ang said.
And like any experienced business leader, Ang sees opportunity in disruption. With fewer vehicles currently on the road, he said this is a good time to accelerate infrastructure projects—expanding and improving major roads—to prepare for a smoother return to normal economic activity.
Ang’s message is a masterclass in crisis management, reminding those in power that crises test not only systems, but leadership and discipline. Ensuring supply is only part of the equation—how resources are used and responsibility is shared matter just as much.
