Friday, August 08, 2008 Petron to close oil depot in GenSan
THE country's leading oil refiner, Petron Corp., will heed the closure order imposed by the City Government of General Santos against the oil depots in the reclassified Bula district, a company official said.
Petron's decision to adhere to the warning of City Hall that it will forcibly close the Bula fuel storage facility by December left Chevron (Caltex) Philippines, Inc. as the only company yet to issue a statement on the matter.
Last June, Pilipinas Shell Petroleum Corp. told the local media that it is scouting for sites in the locality in compliance with the closure order on the Bula oil depot.
Felimon Antiporda, Petron vice president for supply and operations, said his company will move out from Bula before the December deadline to Barangay Bawing, assuring the transfer would not have any impact to prices and supply of its products in the city and neighboring areas.
The Bula oil depot of the three major oil companies also supplies the requirements of the provinces of South Cotabato, Sultan Kudarat Sarangani and the cities of General Santos, Koronadal and Tacurong.
"We have been building up our facilities at Bawing, which is only 17 kilometers from Bula, for this eventuality. We have always been committed to support the growth of the region and this means a dependable supply hub, which can provide fuels at the least cost," Antiporda said in a statement.
Under City Ordinance 10 Series of 2001, the City Government re-classified Bula district from an industrial area to a commercial zone.
The Confederation of Transport Cooperatives and Associations in General Santos City, Inc. has asked the City Government to reconsider the closure of the oil storage facilities at the end of this year, fearing such would spark a supply crisis and a further spike in the prevailing pump prices of the commodity.
But Antiporda assured that closure of the Bula oil depot would not have any impact on the supply and prices of fuel products in the Socksargen area. Shell has also issued the same assurance.
The transport group, which earned the backing of the Regional Development Council (RDC) in Central Mindanao for a deferment of the closure order, sought an extension from three to five years for the construction of commercial oil depot outside Bula district.
"The depot closure (in December) will result in at least a three to five year interim period whereby the oil players, to include new entrants (small independent oil players), will be trucking fuel supply from Davao City. By our estimates, this may correspond to an increase of fuel prices of P.60 to P1 per liter over the prevailing pump prices," the group added.
With fuel products coming from Davao, which is about 160 kilometers to this city, consistency and reliability of supply was raised by the transport confederation.
"Our recommendation is for the City Government to reconsider extending the operation of the Bula oil terminal until such time there are other existing and operational depots that can provide the city and nearby areas with reliable, safe and stable supply of fuel products at competitive prices," said Ma. Lourdes D. Lim, RDC-Central Mindanao acting chair and regional director of the National Economic and Development Authority.
Mayor Pedro B. Acharon Jr. has junked the request for an extension to close the Bula oil depot.
"We have given the giant oil players too much lead time already to vacate the Bula oil terminal. I will implement the ordinance because if I will not, it will not look good," the mayor said.
He recalled that the local government has asked the three major oil players to relocate to other sites in the city three times already, each with a five-year grace period. This was in 1993, 1998, and 2003.
