Pandacan exit won't affect oil prices – Shell
MANILA, Philippines – Pilipinas Shell Petroleum Corporation's (PSPC) exit from the Pandacan oil depot in Manila won't dictate an increase of its consumer petrol prices, a high ranking official from the company said.
Ramon del Rosario, PSPC vice president for communications, said prices of its oil products will always depend on competition despite adjustments in distribution costs.
"Probably there will be an increase in distribution prices but in so far as prices are concerned it will be market driven," said del Rosario.
Fears of higher oil prices surfaced after the Supreme Court (SC) on November 25 ordered several multinational companies to move out their oil companies from the depot situated along the banks of the Pasig river.
Energy Secretary Carlos Jericho Petilla said oil prices are likely to go up due to the logistical problem of transporting oil.
For one, delivery of aviation fuel to the Ninoy Aquino International Airport (NAIA) would be a problem if the depot would be relocated to Batangas or Bataan.
Oil companies, including Chevron Philippines Incorporated and Petron Corporation, have oil distribution terminals in Pandacan that supply the fuel needs of Metro Manila and nearby provinces.
The SC ruling declared unconstitutional a Manila City ordinance which prolonged the multinational oil companies' stay at the Pandacan Oil Terminals.
It gave the companies 45 days to submit an updated comprehensive plan and relocation schedule to the Manila Regional Trial Court (RTC) Branch 39.
But Del Rosario said PSPC has not yet received a copy from the high court, although vowed it would "observe the rule of law and good governance."
PSPC's relocation should be completed within 6 months after the RTC branch receives their documents, according to the SC decision.
Chevron Philippines has left the oil station since June, while Petron has committed to vacate Pandacan in 2015.
Petron chairman Ramon Ang had announced in May that the company would spend P15 billion for the relocation to either Rosario, Cavite; Limay, Bataan; or Navotas in Metro Manila.
After the September 11, 2001 terrorist attacks in New York City in the United states, the depot has been seen as a security threat due to its location. The depot sits just a few kilometers away from Malacañang Palace – the residence of the President of the Philippines. –Rappler.com