Petron to close Bataan oil refinery due to a difficult environment
Petron the Philippines sole refiner, is to shut down its 180kbd (9Mnta) Bataan refinery amid a difficult environment brought about by the coronavirus pandemic and an uneven playing field.
Petron’s competitor, Pilipinas Shell Petroleum, also closed its 110kbd (5.5Mnta) Batangas refinery in August.
The current taxation system, of taxing imported crude and further taxation on the sale of processed petroleum product, along with the requirement to retain a 70-day inventory is crippling company.
Petron President Ramon Ang said its 88kbd (4.4Mnta) Port Dickson Refinery in Malaysia would likely survive because of the even playing field created by the Malaysian government.