Zero-tariff on oil, new Petron product may lead to cheaper pump prices

MANILA, Philippines- A new product from the country's largest oil firm, and the renewal of the zero-tariff on imported fuel, has the potential to ease oil prices by P3.50 in the coming weeks. Petron Corp., the country’s largest oil refiner, formally introduced on Monday its ethanol blended gasoline, which is P2 per liter cheaper than regular gasoline. At the launch of Petron's E10 Premium, Energy Secretary Angelo Reyes said Petron’s new product will not only be environment-friendly but will be a welcome development amid the continuing increase in the country’s pump prices as this will be cheaper Aside from the P2 per liter drop in gasoline prices from Petron gas stations, the DOE is also set to certify anew a zero-percent tariff cut on imported crude oil which will result in a P1.50 per liter reduction in diesel prices by July 1. To be able to offer the ethanol blend, Petron imported 38,000 liters of ethanol from Brazil since production of the biofuel in the Philippines has yet to start. E10 Premium will be offered in the following Metro Manila stations: Visayas Avenue , Quezon City ; Marcos Hi-way (Westbound), Pasig City ; Marcos Hi-way (Eastbound), Pasig City ; A. Santos Ave , Paranaque ; San Marcelino Paco Manila; Quezon Avenue , Quezon City ; Osmena Hi-way. Makati ; Shaw Blvd. , Pasig City; Macapagal Ave. , Pasay City; West Service Road, Paranaque; Circumferential Road, Antipolo; FB Harrison, Manila; Boni Ave,. Mandaluyong; and Ortigas Extension, Taytay Rizal By the end of this year or early next year, Petron would likely source its ethanol blend requirements from the local market, the company said. Petron chairman Nicasio Alcantara said San Carlos Bioenergy Inc. will start supplying the oil company’s ethanol requirement. San Carlos and Petron have a 10-year exclusive supply contract of ethanol. Alcantara said they are also negotiating with Leyte-Agri Corp. for a supply of nine million liters. “The early introduction of Petron E10 Premium ahead of the government’s mandate is part of our efforts to promote the use of environment-friendly alternative fuels that can be produced locally. Once available in the country, the use of ethanol as an additive to gasoline will lessen our dependence on imported oil," Alcantara said. Petron E10 Premium may be used in majority of fuel-injected vehicles, whether old or new. It can be used without the need for expensive engine modification. Before filling up with E-10 Premium, however, it is advisable to refer to your car manual or to consult with your car dealer. - GMANews.TV