New oil firms face supply problems

New oil companies are likely to face supply problems early next year due to the abrupt closure of the oil terminal of Eastern Petroleum Corp. (EPC) in Pasig.

Industry sources, who requested anonymity, said the closure of the terminal has started taking its toll on the Subic Bay Distribution Inc. (SBDI).

"Many of the new entrants are buying their requirements from EPC and they are beginning to feel supply tightness. Gasoline shortage at service stations is getting more prominent. SBDI clients have to wait longer due to the longer travel time from Clark and Subic," the sources said.

At present, the oil terminal of EPC is capable of handling 300,000 to 400,000 liters of petroleum products such as diesel, kerosene, and gasoline per day.

The local government of Pasig padlocked the said terminal middle of this months due to complaints lodged by the residents living near the facility.

EPC chairman Fernando L. Martinez said they are now preparing a counterclaim to prove that they have been complying with the safety and environmental rules of the local government.

The Pasig government will only lift the closure order if the EPC will submit documents to counter the claims of the residents near the terminal.

Martinez said the EPC terminal is one of the most modern oil facilities in the country. He said they would be seeking the help of the Department of Energy on this matter.

"The DOE secretary (Vincent S. Perez) has committed to look into the matter and I think he is arranging a meeting with the Pasig government officials. He is aware that the security of supply may be affected here," he said.

EPC currently operates 30 service stations in Luzon. By the end of 2003, the company expect to increase the number of the service stations to 100. – Donnabelle Gatdula