Ramon Ang: Petron to shut down Bataan oil refinery ‘very soon’

Petron president Ramon Ang said the company would shut down its Bataan oil refinery “very soon” amid a “difficult” situation due to the COVID-19 pandemic and an unfair playing field.

“The refinery business today is very difficult. Around the world, a lot have shut down,” Ang said in a virtual briefing.

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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.

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“Nakakaawa lang empleyado kasi lilibo libo yan na mawawalan ng trabaho pero dun pa din tayo patungo,” Ang said.“The only way to save this is if we go to Congress to make it a level playing field.  Other than that, it will shut down,” he said.

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Ramon Ang: Petron to shut down Bataan oil refinery ‘very soon’

The Petron chief admitted that convincing Congress to amend the tax law would take time.

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“We have to amend the law, or Malacanang will come out with an executive order,” he said.

Ramon Ang assured Petron and San Miguel Corp. that they would take care of their employees even if the Bataan oil refinery shuts down.

“We can keep the gas stations and pay the debts forever…We will pay all obligations, and we have enough to pay all the obligations,” he said.

However, Ramon Ang said that without a refinery, the Philippines “will be at the mercy of foreign suppliers.”

Petron’s rival Pilipinas Shell closed its refinery last month while Caltex Philippines shut down its refinery in 2003.