Seaoil Philippines opens 18 new stations

MANILA, Philippines - Oil retailer Seaoil Philippines, Inc. opened 18 more oil stations nationwide in the first half, maintaining its lead as an independent oil player. The company is pumping up its network almost fourfold to 500 stations by 2011, from 138 stations now. Seaoil plans to add 26 more in Metro Manila, Northern and Southern Luzon, the Visayas and Mindanao later this year. Seaoil President Glenn L. Yu said the additional stations had resulted in a 40% increase in volume, while sales went up by 87% on a yearly basis. The newly opened gasoline stations included seven in Metro Manila, three in Northern Luzon, four in Southern Luzon, one in the Visayas and three in Mindanao. Since the Philippine oil industry’s deregulation in the late 1990s, Seaoil said it has taken an aggressive stance in developing a nationwide retail network composed of both franchised and company-operated stations. After opening its first branch in Manila in 1998, Seaoil increased the number of its stations from to 50 within four years. Seaoil has traced its expansion to its innovative franchise model — the Seaoil Express Station, a fast and easy way to own a gasoline station franchise. The Express Station may be franchised for as low as P2 million, inclusive of an initial set of inventories. Asked about a possible price rollback, Mr. Yu said they were still evaluating how fuel prices will move this week. "We are still studying it. We also have to take note that the peso is depreciating against the dollar," he pointed out. "But each firm will have different opinions and its own figures. However, at the end of the day, it’s still market forces," he added. — Ava Kashima K. Austria, BusinessWorld