Press Release
November 3, 2020

Gatchalian raises concern over impact of possible Petron refinery closure

Senator Win Gatchalian expresses concern on the looming shut down of Petron Corporation's refinery in Limay, Bataan due to huge losses amid the COVID-19 pandemic

The immediate impact will be the loss of jobs in the country's lone oil refining company once it ceases operations, according to the senator. He called on the government to do everything to make sure the company survives to save jobs.

"Now is not the right time to shut down businesses. This is very crucial. Employment is very important during this pandemic, "Gatchalian said.

"Government should do everything to save the refinery, which is a key industry for developing and industrialized nations. Refineries create value - import cheap crude oil and sell higher value refined petroleum," he added.

Gatchalian said the eventual shutdown of Petron's refinery, which followed the move of Pilipinas Shell Petroleum Corporation made some two months ago, would place the country at the mercy of foreign suppliers and prices.

Although a temporary closure will not lead to negative price outcomes for consumers due to oversupply of oil in the global market, the Chairman of the Senate Energy Committee said a permanent closure will have energy security implications as the country will be more dependent on imports for petroleum products.

Data culled from the Department of Energy-Oil Industry Management Bureau (DOE-OIMB) showed that Petron accounts for more than half of the country's total refinery production last year at 59.5 percent.

Petron's refinery supplied 20.61 percent of the country's total demand for petroleum products last year.

Petron President and Chief Executive Officer Ramon S. Ang cited unresolved taxation issues with the government and losses from selling finished fuel during times of price fluctuations in the global oil market.

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Planong pagsasara ng Petron refinery nakakabahala - Gatchalian

Nagpahayag ng pangamba si Senador Win Gatchalian sa nakaambang na pagsasara ng oil refinery sa Limay, Bataan ng Petron Corporation dahil sa malaking pagkalugi matapos tamaan ang bansa ng pandemya dala ng Covid-19.

Ang trabaho ng mga manggagawa ang direktang maaapektuhan ayon kay Gatchalian oras na magsara ang refinery. Nanawagan sa gobyerno ang senador na gawin ang lahat ng makakaya para maisalba ang operasyo ng refinery at maisalba din ang trabaho ng mga empleyado.

"Hindi ito ang panahon para magsara ng negosyo. Napakahalaga nito sa mga manggagawa lalo na't nasa gitna tayo ng pandemya at maraming apektadong pamilya,"saad ni Gatchalian.

"Nananawagan ako sa gobyerno na gamitin ang lahat ng kapangyarihan nito para maisalba ang nanganganib na negosyo ng kumpanya. Ang refinery ay isang mahalagang industriya sa mga umuunlad na bansa dahil may dala itong value-added products," dagdag pa ng senandor.

Sa pahayag ni Petron President at Chief Executive Officer Ramon Ang, problema sa usaping buwis at ang lumalaking pagkalugi nila kasunod ng huminang demand nuong kasagsagan ng lockdown ang nagbunsod sa nakaambang na pagsasara ng refinery.

Sakaling matuloy ang plano ng Petron, nakaasa na sa kamay ng mga foreign suppliers ang suplay at presyo ng langis sa bansa. Nauna nang magsara ang refinery ng Pilipinas Shell Petroleum Corporation dalawang buwan na ang nakakalipas.

Bagamat hindi ganoon kalaki ang magiging epekto ng pagsasara ng refinery dito sa bansa ngayon kung pansamantala lamang ito kasunod na rin ng umaapaw na suplay ng langis sa merkado, sinabi ng chairman ng Senate Energy Committee na ibang usapan na kung pangmatagalan o permanente ang planong pagsasara dahil nakasalalay na sa ibang bansa ang pangangailangan ng buong PIlipinas sa suplay at presyo ng produktong petrolyo.

Ayon sa record ng Department of Energy-Oil Industry Management Bureau (DOE-OIMB), higit sa kalahati o 59.5 porsyento ng kabuuang refinery production noong 2019 ang naproseso ng Petron.

Nasa 20.61 porsyento naman ang naisuplay ng kumpanya sa kabuuang pangangailangan ng bansa sa produktong petrolyo noong nakaraang taon.

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