MANILA, Philippines - Pilipinas Shell Petroleum Corp. has assured the public that closing down the Pandacan oil depot by November will not result in higher oil prices in Metro Manila.
Pilipinas Shell communications and social performance manager Cesar Abaricia said the oil company still has enough inventory even after leaving the Pandacan oil depot.
The 33-hectare depot – the largest in the country – houses the storage facilities and distribution terminals of the country’s three major petroleum industry players, namely Shell, Petron Corp. and Chevron Philippines Inc.
In an ocular inspection last Monday, Manila Mayor Joseph Estrada got the assurance of the country’s three largest oil firms that their equipment would be out of the depot before the end of the year.
The Supreme Court upheld its decision last March ordering the companies to leave the oil depot.
In compliance with the order, Shell will source the fuel requirements of its stations from its Batangas facilities, Abaricia said.
Meanwhile, the local subsidiary of energy giant Royal Dutch Shell may resort to importing lubricants by next year.
However, Abaricia clarified that this move “will not necessarily result in higher prices because there are instances it is cheaper to import.”
The city government wants the sprawling facility transformed into a commercial hub in 10 years.
Read more on the Philippine Star.