DOE, Pagcor to put up loan facility for new oil players

To further promote competition in the deregulated oil industry, the Department of Energy (DOE) and the Philippine Amusement and Gaming Corp. (Pagcor) have formalized the creation of a P300- million special purpose fund to be lent out to new oil players.

"This fund has been under study since the passage of the Oil Deregulation Law in 1998. I don’t know why it was not implemented then. This (fund) has been four years in the making. I think, it’s about time to allow more players in the industry to enhance competition," Energy Secretary Vincent S. Perez said.

According to Perez, the fund is provided for under Republic Act 8479, otherwise known as the Oil Deregulation Law. "The DOE and Pagcor have signed a memorandum of understanding (MOU) to implement this provision of the said law," he said.

Perez said the fund to be set up by Pagcor and to be administered by the DOE will be loaned out to small entrepreneurs who want to put up a gas service station.

He said a criteria will be set and interested parties will have to apply with the DOE. "If they will meet the criteria set by DOE’s Energy Industry Administration Bureau headed by Ms. Naydee Monsada, they will be granted a loan," he said.

The energy chief said the loan applicants could avail of up to P5- million maximum from the P300-million so-called gasoline station training and loan fund.

Industry estimates show that an entrepreneur will need some P4 million to P10 million to put up a retail gas station. – Donnabelle Gatdula