The chairman of the Senate Committee on Energy struck an upbeat note on Friday, signaling an emerging consensus that Petron refinery’s mid-year resumption of operations in Bataan portend a “good sign” amid lingering woes over the still raging coronavirus contagion.
Sen. Sherwin Gatchalian, panel chairman, cited reported plans by Petron Corp.’s refinery resuming operation in Bataan by midyear, noting it “sends a positive signal to the oil and gas industry as it will ensure the continuous employment of at least 3,000 workers and contribute to supply stability which may result in lower fuel prices in the country.”
He recalled that Petron temporarily ceased its refinery operation last February 10 to conduct maintenance activities on key process units, informing the Department of Energy (DOE) the shutdown would last for four months.
Moreover, the senator reminded that before this, Petron President and Chief Executive Officer Ramon S. Ang had conveyed plans on “permanently shutting down” the 60-year-old Bataan oil plant “due to huge losses brought about by the pandemic and unresolved taxation issues” with the government.
However, Gatchalian added that just recently, the company announced plans of reopening the refinery plant sometime July following the completion of the company’s registration with the Authority of the Freeport of Bataan (AFAB).
He noted that AFAB-registered companies are entitled to avail of fiscal incentives under the Special Economic Zone Act of 1995, or the Omnibus Investments Code of 1987, saying this may “benefit the company in the form of better timing on the payment of value-added tax (VAT) upon the withdrawal of the products from the refinery.”
At the same time, the senator stressed “saving jobs when there’s a spike in new Covid-19 cases is very crucial while we continue to grapple with the impact of this pandemic.”
The lawmaker likewise cited 2019 data, noting Petron’s market demand share of 24.60 percent, supplying 33.12 percent of total petroleum products in the country, adding that Petron’s refinery has a daily production of 96,980 barrels as of 2019 and produces various petroleum products including diesel, gasoline, liquefied petroleum gas (LPG), jet fuel, and petrochemicals.
Gatchalian added that had Petron proceeded to permanently close the country’s sole remaining refinery, almost 1,000 of Petron’s refinery workers and 2,000 third-party personnel that include suppliers and contractors would have lost their jobs.