CEBU-BASED listed firm Top Line Business Corp.’s fuel distribution unit is pressing ahead with its expansion plans even as Middle East tensions inject volatility into global oil markets and logistics chains.
In an interview, Top Line chairman, president and chief executive officer Eugene Erik Lim, confirmed that the expansion plans for Light Fuels remain “on track” despite the tensions in the Middle East.
“For Light Fuels, we’re ahead of our plans. We will be announcing projects by July. July is exciting,” Lim said.
He said that as a company, they make sure they have enough fuel reserve to serve the market during challenging times.
“If war breaks out, our priority is to ensure we have enough reserves in place — this will help cushion the impact of price fluctuations,” Lim said, adding that the company typically holds a month’s worth of fuel in reserve.
Global oil benchmarks fluctuated at the height of the Iraq-Israel tension. Oil prices spiked roughly 11 percent following Israeli strikes on Iranian nuclear sites in mid-June — with Brent crude jumping from around US$67 to a peak of $78 per barrel. This triggered widespread concern. However, global oil prices calmed down following the ceasefire between Israel and Iran on June 23.
Lim said this week’s pricing cycle shows forecasts of up to P2-per-liter price reduction after the more than P5 per liter increase last week.
“Unlike during natural disasters like Typhoon Odette, when supply was severely disrupted because receiving facilities were damaged, this situation is different. The infrastructure is still intact — it’s just a matter of transportation. It’s more expensive, yes, but the supply is there,” Lim said.
President Ferdinand “Bongbong” Marcos Jr. earlier assured that the tensions between Iraq and Israel have “no significant” impact on the Philippine economy.
Marcos said the effect of the Iran-Israel war “should be manageable.”