PETRON Corp. is placing its development plans on the back burner in the Philippines as it is waiting to stabilize worldwide crude oil prices.
Earlier, the listed oil refiner said it was spending $1 billion to upgrade its refinery and expand its retail network over the next three years.
About $600 million of this expenditure was allocated for its development of the refinery in Limay, Bataan.
Petron’s business is getting worse because the fluctuation in crude oil prices is getting larger. Petron President and Chief Executive Officer Ramon S. Ang told journalists after another company’s stockholders meeting he leads in Mandaluyong.
Mr. Ang quoted the big changes in world crude oil prices presently influencing the sector, as well as reduced prices among autonomous players. He said that lower players, or what he called white stations, now account for 37 percent of the complete quantity of sector.
The top official replied in the affirmative when questioned if smuggling has become widespread in the nation, noting that this was caused by the imposition of excise taxes on oil products.
Mr. Ang stated the excise taxes have doubled to P12 since the implementation of the Tax Reform for Acceleration and Inclusion law in 2018, prompting the proliferation of oil smugglers in the country.