Petron Corp. announced it would continue to shut down its refinery in Bataan by mid-January 2021.
In a disclosure to the Philippine Stock Exchange yesterday, Petron said its oil refinery in Limay, Bataan, would be shut down starting the second half of January 2021.
“During this economic shutdown, the company will conduct maintenance activities on key process units,” the oil firm said.
“There will be no supply disruption as a result of the shutdown given the healthy inventory of the company and the replenishment by the company of its supply through the importation of finished products,” it added.
The refinery resumed its operations in October after it shut down in May for maintenance activities and manage the impact of low fuel demand and poor refining margins.
Thom de Villa, a shift supervisor, and his 50 Petron Refinery co-workers sought the help of Limay, Bataan Mayor Nelson David to save the refinery, which has been operating for the last 60 years.
Petron to shutdown Bataan refinery by January 2021
Ang said Petron the uneven playing field compared to oil importers in terms of tax payments, compounded by inventory losses amid low demand at the height of the community quarantine hit the company hard.
“There has to be a level playing field. If Petron will not have a level playing field with the importers, we will shut down for sure. When? Very soon,” Ang said.“Our competitors, those without refinery, when they deliver diesel and gasoline directly there is no tax, they will just pay the tax once they sell,” he said.
Ang said Petron lost billions of pesos in losses because of the fluctuation of oil prices in the world market amid the COVID-19 crisis.
He admitted that convincing Congress to amend the tax law would take time.
“We have to amend the law, or Malacanang will come out with an executive order,” he said.