New oil players press bid for expressway service stations

New players in the country's downstream oil industry have formed an informal alliance to pressure government to act on their separate petitions for the establishment of service stations along the north and south expressways.

"The Philippine National Construction Corp. (PNCC) has a shortlist of nine approved applications which they have not acted upon," the new players said. "Some of these applications have been filed as far back as two and half years ago."

The shortlist consists of applications from oil players and property developers interested in establishing not only service stations but convenience stores, "stop-overs" or rest areas. One applicant revealed that they have been paying lease for the last two years and have suffered huge loses due to the delays.

At present, only the three major players have been allowed to put up service stations along the two expressways. Petron Corp., Pilipinas Shell Petroleum Corp., and Caltex Philippines Inc. have new service stations on both the north and south expressways. They have also been given the green light to establish several more giving them control of both sides of the lanes of the superhighways.

New players, such as Total Petroleum Philippines Corp. (TPPC), Unioil Corp., Sea-Oil Petroleum Corp., and Flying V, have already filed applications to establish service stations. However, the PNCC only met them formally last February without any definite results.

"We fear that further delays in the approval of our applications will result in the withdrawal of budgets allocated for the service stations by our mother unit in France," representatives of TPPC said.

The standard service station is estimated to cost P80 million per station along the expressway.

Industry sources said a memorandum of agreement (MOA) exists between the major players and the PNCC which gives the former undue advantages over the new players. "In fact, the implementing guidelines issued in July 1999 by the PNCC clearly makes it impossible for new entrants to join in the fray."

Adding to the difficulties of the new players is the confusion on what entity has clear jurisdiction over the issue and how all the regulations are affected by the deregulation of the industry.

Public Works and Highways Sec. Gregorio R. Vigilar is the chairman of the Toll Regulatory Board (TRB) while the PNCC is the tollway operator of the two expressways. The latter is supposed to be privatizated but officials claim that they are "quasi-entities" or functioning both as private and government entities.

New players said that they have been getting the run-around an red tape from both the RRB and the PNCC. They are also unclear on how they will be affected by the entry of the First Philippine Holdings which was awarded to contract to develop a "skyway" along the north expressway.

"It is really very confusing," said a Filipino-owned oil company. "Are they not aware that the industry has bene deregulated? Should they (government) not establish an level-playing field for all parties?