Tuesday, March 25, 2008 Lawmaker opposes sale of Petron to British investor
BAYAN Muna party-list Representative Teodoro Casiño is calling for a stop to "another possibly shady deal" involving the sale of Petron Corporation to a British investment firm Ashmore.
"I would like to know why Aramco Overseas Corp. is selling its 40 percent stake in Petron Corp. for what appears to be a song and why the Arroyo government is not taking advantage of this to get back majority control in the country's oil refinery and market leader," Casiño said.
A subsidiary of London-based investment firm, Ashmore, has offered US$550 million for Aramco's stake in Petron Corp. The Saudi government-owned company bought its Petron stake for about US$530 million in 1994.
"It will be fool-hardy for Arroyo to allow this transaction to prosper. There is something wrong here. It looks like a fire sale," said Casiño who is a principal author of House Bill (HB) 3031 which mandates the government to re-acquire control of Petron Corp.
Under Casiño's bill, government needs to acquire an additional 11 percent of Petron's shares on top of the Philippine National Oil Company's (PNOC) 40 percent stake for the state to gain the majority in the oil firm.
"Government must realize that the people want a stop to monopolistic and rapacious increases in oil prices. One way is for the government to gain market leverage by getting back majority control of Petron," he added.
Petron has consistently retained its market position, cornering 40 percent share of the Philippines' fuel market.
"Petron refines, markets and distributes fuel throughout the Philippines. A level headed government should easily see that oil price increases can be effectively be put in check if the state itself has market leverage. It is only right to challenge the regime to certify as urgent the passage of HB 3031," said Casiño.
HB 3031 has been pending with the House committee on government enterprises and privatization since November 13, 2007.
"I hope that the House can immediately act on this important legislation once session resumes next month," Casiño said. (Press release)
