Philippines Petroleum Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Philippines petroleum market was valued at USD 28.04 Billion in 2024. The industry is expected to grow at a CAGR of 4.40% during the forecast period of 2025-2034. Rapid industrialization, expanding transportation infrastructure and the emergence of a growing middle-class population are primary drivers fostering the increase of petroleum consumption in the Philippines. In turn, all these factors have resulted in the market attaining a valuation of USD 43.13 Billion by 2034.

Philippines Petroleum Market Report Summary

Description

Value

Base Year

USD Billion

2024

Historical Period

USD Billion

2018-2024

Forecast Period

USD Billion

2025-2034

Market Size 2024

USD Billion

28.04

Market Size 2034

USD Billion

43.13

CAGR 2018-2024

Percentage

XX%

CAGR 2025-2034

Percentage

4.40%

CAGR 2025-2034 - Market by Type

Light

5.0%

CAGR 2025-2034 - Market by Location

Onshore

4.9%

Philippines Petroleum Market Overview

Domestic Energy Needs and Regional Supply Needs are Expected to Drive the Market Growth

The Philippines petroleum market growth is largely contributed by both domestic energy needs and regional supply forces. The increased investment by the government in transport and energy systems has made petroleum products, mainly diesel, gasoline, and jet fuel, more pressing. Additionally, there is also the double burden of insulation from imports and offshore and onshore reserves to be harnessed for self-reliance. Moreover, increased vehicle ownership and commercial activities is expected to drive further demand in the market.

Philippines Petroleum Market Drivers

Rapid Modernization of Public Transport Systems

The modernization of public transport systems like the Metro Manila Subway with growing freight activity, has directly impacted diesel and gasoline consumption, boosting the demand in the Philippines petroleum market. The economic decentralization and the growth of second-tier cities are further raising petroleum demand levels across the region. Energy security promotion by the government is facilitating supply resilience by investing in downstream infrastructure, such as new refineries and storage depots. The commercialization of aviation is also adding to the increase in petroleum product consumption by growing shipping activities in the maritime zone.

Increased Number of Operations in the Petrochemical Industry

As per the Philippines petroleum market analysis, the petrochemical sector is expanding rapidly, with major players like JG Summit Petrochemicals Group leading the way. This growth is fueled by the increasing demand for plastic products, synthetic fibers, and other petrochemical derivatives. For instance, JG Summit has been investing in expanding its production capacities to meet the rising domestic and regional demand. The expansion of petrochemical facilities necessitates a steady supply of feedstock, primarily sourced from crude oil, thereby boosting the demand for both heavy and light crude variants.

Trends in the Philippine Petroleum Market

Shift to Cleaner Fuel Processing Technologies

The Philippines petroleum market observes a rapid shift towards cleaner fuel processing technologies. For instance, companies like Petron Corporation are upgrading their refining technologies. These companies are increasingly aiming toward the production of Euro-5 compliant fuels with low emissions meeting global environmental standards. The trend of moving to greener options is an industry-wide phenomenon that is driven by regulation and public sentiment.

Increased Activities in Offshore Exploration and Drilling

Increased activities in offshore exploration and drilling is an emerging trend that is reshaping the Philippines petroleum market dynamics. For example, Chevron Philippines is increasing its offshore assets in the West Philippine Sea after having exploratory success and enjoying renewed investor confidence. With modern seismic imaging and improved frameworks for sharing risks, companies are moving to greater depths to search for new reserves.

Philippines Petroleum Market Share

By Type, Light Petroleum Dominates the Market Share

Light crude holds the largest share in the Philippines petroleum market due to its relatively low sulfur content and suitability to be refined into high-demand products such as gasoline and diesel. The country's refineries are designed for processing mostly light sweet crude; hence imports from the Middle East and other neighboring ASEAN producers boost the growth of this particular segment.

Moreover, as per the Philippines petroleum market analysis, heavy crude is one of the fastest-growing segments primarily for use as an industrial fuel and bunker fuel. The demand for heavy crude or less refined oil is increasing particularly in coastal power plants and ports as production and maritime activities rise.

CAGR 2025-2034 - Market by

5.0%

XX%

XX%

XX%

Onshore Operations Account for the Dominant Share in the Location Segment

The onshore operations dominate the Philippines petroleum market revenue share especially in areas like Palawan and Central Luzon. These areas are more accessible and cost-effective for exploration and development with faster return on investment for companies aimed at domestic resource tapping.

The offshore exploration segment in the Philippines petroleum market is growing due to new government policies seeking to encourage foreign investments and partnerships under the Philippine Energy Contracting Round (PECR). The West Philippine Sea and Sulu Sea are certain hot spots for potential discoveries attract global players with high-risk tolerance.

Competitive Landscape

Top Philippines petroleum market players are upgrading refiners and creating new storage depots to improve domestic supply lines. For example, Petron Corporation has recently enhanced its Bataan refinery capacity while Pilipinas Shell has revamped its Batangas terminal into an import-focused hub in order to maintain supply during disruption._x000D_

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Moreover, Philippines petroleum companies are also automating and digitalizing their operations in fuel retail. For example, Chevron Philippines has introduced mobile payment systems and digital loyalty programs for urban customers. Meanwhile, San Jose Oil is expanding its presence amongst mobile fuel stations and customized delivery services targeting the neglected communities.

Pilipinas Shell Petroleum Corporation

Pilipinas Shell, founded in 1914, has been a pioneer in the retail fuels and supply chain innovation business in the Philippines. The company intends to upgrade terminals and adopt digital technology platforms to bring about smarter logistics and engage customers nationwide.

Petron Corporation

Incorporated in 1933, Petron is the largest refining and marketing company in the Philippines. The company is focused on increasing refining capacity, growing product diversity, and exporting surplus production to regional markets.

Chevron Philippines Inc.

Based in Texas, United States, Chevron operates under the Caltex brand. The company’s strategy focuses on offshore exploration, premium fuel offerings, and optimizing customer experience through mobile technologies and loyalty programs.

San Jose Oil Company, Incorporated

Founded in 1954, San Jose Oil targets the regional marketplace of Visayas and Mindanao. The company invests in modular refineries and logistics fleets to increase rural market penetration and ensure last-mile fuel accessibility.

Other players in the Philippines petroleum market include Altisima Energy, Inc, Anglo-Philippine Oil & Mining Corporation, Japan Petroleum Exploration Co., Ltd., Phoenix Petroleum, Seaoil Philippines, Inc, Unioil Petroleum Philippines Inc., and Liquigaz Philippines Corp., among others.

Recent Developments

March 2025

The state-owned Philippine National Oil Company (PNOC) signed a memorandum of understanding (MoU) with the Batangas provincial administration to investigate the establishment of an offshore wind integrated port in the province.

March 2025

Repsol reached an agreement to buy a 40% ownership in Unioil Lubricants, Inc. (ULI), a company that would manufacture and distribute Repsol products in the Philippines. This acquisition is projected to strengthen Repsol's market presence in Southeast Asia, a region known for its rapidly expanding lubricants sector, which has annual sales of 3 million metric tons and a 4% growth rate.

February 2025

Aramco, one of the world's top integrated energy and chemicals corporations, announced that it has inked definitive agreements to purchase a 25% ownership position in Unioil Petroleum Philippines, the Philippines' largest petroleum company.

October 2024

I Squared Capital announced an agreement to buy Philippines Coastal Storage & Pipeline Corporation and its affiliates. The acquisition is valued at up to USD 510 million, with a potential earn-out of USD 50 million. PCSPC, the Philippines' largest petroleum products import storage facility, has a capacity of roughly 6 million barrels.

Market Outlook: 2025-2034

As far as the Philippines petroleum market outlook is concerned, demand is expected to continue stemming from urbanization, financing transportation infrastructure, and industrial growth. Through investing in offshore reserves and storage infrastructure, the reliability of domestic supply will only be augmented. Moreover, policies set by the government and foreign partnerships under the PECR are expected to be important in attracting international capital for exploration. Digitalization and environmental regulations will also change how petroleum companies work, forcing them to adjust their strategies toward efficiency and sustainability.

Why This Report?

The Philippines Petroleum Market Report and Forecast 2025-2034 delivers a thorough and strategic analysis, offering key insights into:

• In-depth SWOT and Porter’s Five Forces analyses to examine the competitive landscape, supplier and buyer dynamics, new entrants, and the bargaining power of players within the petroleum ecosystem.
• Insights into key demand and price indicators , such as the impact of procurement policies, offset obligations, indigenization mandates, and international collaborations on pricing and investment trends.
• Actionable recommendations for stakeholders include shifting towards cleaner fuel processing technologies, increase activities in offshore exploration and drilling, focus on mini and modular refineries for remote areas and integrate digital supply chain technologies.

This report equips government bodies, industry leaders, investors, and innovators with the data and foresight needed to navigate Philippines petroleum landscape, seize new opportunities, and build resilience against market shifts. Stay ahead with Expert Market Research’s trusted intelligence and forecasts.