Petron dumps 21 service station dealers for selling inferior products

Petron Corporation on Tuesday said it terminated the contract of 21 service station dealers for buying petroleum products of unverified quality, a practice known in the industry as “dumping.”

 

It ended the partnerships with the service station dealers over the 12 months to January 2013, the oil giant controlled by San Miguel Corp. noted in a statement.

 

The service stations involved were in Tarlac, Quezon, Isabela, Aurora, Cavite, Laguna, Cagayan, Nueva Ecija, Negros Oriental, Negros Occidental, Iloilo, and General Santos. The dealers were buying petroleum products from other suppliers, and were selling the products under the brand name Petron, the company said.

 

“We do not tolerate these illegal activities and we will continue to go after unscrupulous dealers within our network to ensure the integrity of the Petron brand,” said vice president for national sales Archie Gupalor.

 

“It is our duty to make sure the consuming public only gets Petron’s top-of-the-line fuel and lubricant products whenever they go to a Petron station,” Gupalor added.

 

Petron uncovered the practice of erring service station dealers after regular audits of dispensing pumps revealed the amount of products sold was more than what the respective dealers bought directly from company. — VS, GMA News