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The contamination of soils with petroleum and its derivatives is a longstanding, widespread, and worsening environmental issue. However, efforts to remediate petroleum hydrocarbon-polluted soils often neglect or overlook the interference of heavy metals that often co-contaminate these soils and occur in petroleum itself. Here, we identified <i>Acinetobacter</i> baumannii strain JYZ-03 according to its Gram staining, oxidase reaction, biochemical tests, and FAME and <i>16S</i> rDNA gene sequence analyses and determined that it has the ability to degrade petroleum hydrocarbons. It was isolated from soil contaminated by both heavy metals and petroleum hydrocarbons. Strain JYZ-03 utilized diesel oil, long-chain n-alkanes, branched alkanes, and polycyclic aromatic hydrocarbons (PAHs) as its sole carbon sources. It degraded 93.29% of the diesel oil burden in 7 days. It also had a high tolerance to heavy metal stress caused by arsenic (As). Its petroleum hydrocarbon degradation efficiency remained constant over the 0–300 mg/L As(V) range. Its optimal growth conditions were pH 7.0 and 25–30 °C, respectively, and its growth was not inhibited even by 3.0% (<i>w</i>/<i>v</i>) NaCl. Strain JYZ-03 effectively bioremediates petroleum hydrocarbon-contaminated soil in the presence of As stress. Therefore, strain JYZ-03 may be of high value in petroleum- and heavy-metal-contaminated site bioremediation.