Employees of Petron Corp. are asking the help of the Limay municipal government in Bataan province to stop the imminent closure of the Philippines’ sole oil refinery in the town.
According to a statement on Thursday, shift supervisor Thom de Villa led some 50 refinery employees to call on Limay Mayor Nelson David to save the 60-year-plus facility.
“We believe [that] the government can do a lot to prevent the permanent closure. If the local government and the company’s management work together, there is still a way to save the refinery,” de Villa and his group said in Filipino.
They also expressed support for a proposal to reclassify the refinery as part of the Freeport Area of Bataan.
“Petron is currently implementing various initiatives to improve its financial position.
However, these measures are still not enough. But with the help of the Limay local government, I hope we can convey our thoughts to the national government,” the
employees said in Filipino.
“We support Petron in wanting to include the refinery in the freeport zone, and hopefully the municipality will help us in this matter,” they added.
They also said the shutdown would affect them and their families, especially as the coronavirus disease 2019 pandemic persists.
Including the refinery in the freeport zone, they added, would stop its financial bleeding, since it would “partially address some of the company’s major woes,” including the uncompetitive playing field in terms of taxes.
Petron President and Chief Executive Officer Ramon Ang said in October that the 180,000 barrel-per-day refinery would be closing “very soon” unless all industry players are given a level playing field.
According to him, the refiner is taxed upon importing crude oil while importers are charged at the finished product level, putting the refinery at a significant disadvantage due to higher taxes.
Also, illegal importers have been a problem, as they sell at much lower prices, further eroding Petron’s margins and market share in the country.
In the first nine months of the year, Petron incurred a net loss of P12.6 billion as it continues to bear the impact of the significant 40-percent drop in domestic volume and P13-billion inventory losses during the first four months of the pandemic-induced lockdown.
“Volatility in world crude prices, which ultimately result to huge inventory losses, coupled with the prolonged decline in demand due to the continuing effects of the Covid-19 pandemic on transportation and industries, has further worsened the refinery’s financial woes,” it said.