Smaller players aim to hike LPG market share to 40%

The Independent Philippine Petroleum Companies Association (IPPCA), formerly the New Petroleum Players Association of the Philippines, are expecting to increase their share in the liquefied petroleum gas (LPG) market to 40 percent.

IPPCA executive director Benhur Salcedo, a former Department of Energy (DOE) Undersecretary, said as of the first quarter of 2003, they have already captured 37.2 percent of the LPG market.

For fuel products, Salcedo said they expect their market share to exceed 14.1 percent. There are a total of about 70 independent players currently operating in the country.

He said for the first three months of 2003, the new players’ share of the fuel products has already reached 13.5 percent. The bulk of the market is accounted for by the Big Three: 34.6 percent for Petron Corp., 32.2 percent by Pilipinas Shell Petroleum Corp.; and 19.6 percent for Caltex Philippines Inc.

"We are confident that we will surpass the end-2002 share in the oil industry because we have been very aggressive in putting up more gas stations for the past months. We hope to expand our network nationwide," Salcedo said.

For the Jan.to March 2003 period, there are already 605 service stations that have been put up by the new players. This was a steady increase from 564 in 2002, 411 in 2001, 276 in 2000 and 112 in 1999.

The IPPCA members include Flying V, Unioil Philippines Inc, Seaoil Philippines Inc., Eastern Petroleum Corp., Petrolino Castrol, Subic Bay Distribution Authority, Oil Link International Corp., Pryce Gases Inc., Rambi Development Corp., Filpride Energy, PTT and Jetti.

According to Salcedo, the independent players are also working closely with the DOE for the approval of the proposed circular promulgating the rules and regulations governing the business retailing liquid petroleum products.

He said the DOE is likely to approve the circular within this month to coincide with the observance of the Consumer Welfare Protection Month.

IPPCA, he said, has been wooing the DOE to approve the circular to address major issues or concerns affecting the industry such as those engaged in the sale of the liquid petroleum products without taking into account safe and appropriate technologies.

He noted that the proliferation of unsafe practice in the liquid petroleum retailing particularly with the use of inappropriate containers such as the so-called "bote-bote" style, storage tanks and tank vehicles.

Salcedo said the circular will contain stricter penalties for these illegal retailing businesses.