Group urges to keep Petron refinery running amid closure reports | ABS-CBN
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Group urges to keep Petron refinery running amid closure reports
Group urges to keep Petron refinery running amid closure reports
Warren de Guzman,
ABS-CBN News
Published Oct 29, 2020 12:03 AM PHT
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MANILA--A consumer group on Wednesday said the government should buy the Petron refinery to prevent the company from closing the facility, and to lessen the country’s vulnerability to oil supply and price spikes.
MANILA--A consumer group on Wednesday said the government should buy the Petron refinery to prevent the company from closing the facility, and to lessen the country’s vulnerability to oil supply and price spikes.
Several news organizations have reported that Petron president and CEO Ramon Ang was planning to permanently shut down the oil company’s Bataan refinery allegedly because the tax system put it at a disadvantage against importers of finished products.
Several news organizations have reported that Petron president and CEO Ramon Ang was planning to permanently shut down the oil company’s Bataan refinery allegedly because the tax system put it at a disadvantage against importers of finished products.
Petron has to pay taxes when it imports the crude oil and raw materials used at its refinery, and pay again when it sells its finished products.
Petron has to pay taxes when it imports the crude oil and raw materials used at its refinery, and pay again when it sells its finished products.
Importers of finished products, meanwhile, have to pay taxes only after selling their products.
Importers of finished products, meanwhile, have to pay taxes only after selling their products.
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Ang, according to reports, said Petron would close its refinery “very soon” if its appeal to the government for a “level playing field” in the industry was not heeded.
Ang, according to reports, said Petron would close its refinery “very soon” if its appeal to the government for a “level playing field” in the industry was not heeded.
Petron did not respond to ABS-CBN News' request for comment at the time this story was posted.
Petron did not respond to ABS-CBN News' request for comment at the time this story was posted.
Former Trade Undersecretary Vic Dimagiba of Laban Konsyumer said the government should try to keep the country’s only remaining refinery operating and be wary of having the Philippines becoming dependent on the importation of refined oil products.
Former Trade Undersecretary Vic Dimagiba of Laban Konsyumer said the government should try to keep the country’s only remaining refinery operating and be wary of having the Philippines becoming dependent on the importation of refined oil products.
“Yung may refinery ka sa bansa mo, you can keep inventory of crude oil. And then yung crude oil mo may flexibility ka to refine it to gasoline or to diesel. In other words, what I am saying is kung may problema sa supply ng diesel, you can produce more diesel than gasoline, and vice versa," Dimagiba said.
“Yung may refinery ka sa bansa mo, you can keep inventory of crude oil. And then yung crude oil mo may flexibility ka to refine it to gasoline or to diesel. In other words, what I am saying is kung may problema sa supply ng diesel, you can produce more diesel than gasoline, and vice versa," Dimagiba said.
Dimagiba said the government should consider buying the refinery, or find a buyer who can keep it running.
Dimagiba said the government should consider buying the refinery, or find a buyer who can keep it running.
“What I am saying is that, historically, maybe government should consider buying back for the strategic reason it has served over the years,” Dimagiba said.
“What I am saying is that, historically, maybe government should consider buying back for the strategic reason it has served over the years,” Dimagiba said.
Another alternative would be for Petron to simply put itself and its refinery on sale, and find a buyer who can continue operating the facility.
Another alternative would be for Petron to simply put itself and its refinery on sale, and find a buyer who can continue operating the facility.
Last August, Pilipinas Shell announced the permanent closure of its refinery in Batangas, citing it was no longer economically viable for it to continue running the facility.
Last August, Pilipinas Shell announced the permanent closure of its refinery in Batangas, citing it was no longer economically viable for it to continue running the facility.
Dimgaiba added that San Miguel, which owns Petron, should have taken steps to protect its own interests when lawmakers were still discussing the planned reforms to fuel excise taxes in the Tax Reform for Acceleration and Inclusion or TRAIN law.
Dimgaiba added that San Miguel, which owns Petron, should have taken steps to protect its own interests when lawmakers were still discussing the planned reforms to fuel excise taxes in the Tax Reform for Acceleration and Inclusion or TRAIN law.
Petron posted a net loss of P14.2 billion for the first six months of 2020 versus its P2.6 billion net income in 2019 as fuel demand cratered during the COVID-19 lockdowns.
Petron posted a net loss of P14.2 billion for the first six months of 2020 versus its P2.6 billion net income in 2019 as fuel demand cratered during the COVID-19 lockdowns.
Two years ago, Petron said it was planning to build a new refinery to boost capacity.
Two years ago, Petron said it was planning to build a new refinery to boost capacity.
Read More:
Petron
Ramon Ang
Petron refinery closure
Laban Konsyumer
Vic Dimagiba
oil company
fuel
excise taxes
TRAIN law
ANC
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Marcos Jr. cuts taxes for energy players engaged in build-operate-transfer deals with gov't
Marcos Jr. cuts taxes for energy players engaged in build-operate-transfer deals with gov't
MANILA — President Ferdinand Marcos Jr. has ordered the reduction of real property taxes of independent power producers (IPP) who entered a build-operate-transfer (BOT) agreement with the government.
MANILA — President Ferdinand Marcos Jr. has ordered the reduction of real property taxes of independent power producers (IPP) who entered a build-operate-transfer (BOT) agreement with the government.
In his Executive Order No. 83, Marcos Jr. said that “all liabilities for real property taxes for CY 2024, including any special levies… on property, machinery and equipment directly used by OPPs for the production of electricity under the BOT scheme” shall be “reduced to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value” of these properties.
In his Executive Order No. 83, Marcos Jr. said that “all liabilities for real property taxes for CY 2024, including any special levies… on property, machinery and equipment directly used by OPPs for the production of electricity under the BOT scheme” shall be “reduced to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value” of these properties.
“All interests and/or penalties on such deficiency… are also hereby condoned, and the concerned IPPs are relieved from payement,” the order read.
“All interests and/or penalties on such deficiency… are also hereby condoned, and the concerned IPPs are relieved from payement,” the order read.
The order comes after the Department of Finance (DOF) raised concerns from various local government units that IPPs in their territories “are not entitled to exemptions and privileges enjoyed by other government-owned and controlled corporation.”
The order comes after the Department of Finance (DOF) raised concerns from various local government units that IPPs in their territories “are not entitled to exemptions and privileges enjoyed by other government-owned and controlled corporation.”
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The said discounted tax rate will be “applied to real property tax liabilities for succeeding years,” it said.
The said discounted tax rate will be “applied to real property tax liabilities for succeeding years,” it said.
The DOF was also mandated to submit to the President a progress report on the implementation of the order after six months.
The DOF was also mandated to submit to the President a progress report on the implementation of the order after six months.
Read More:
Ferdinand Marcos Jr.
Malacañang
energy
power generation facilities
tax
ABSNews
real property taxes
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