Petron’s P5.5-B refinery project gets BOI perks

Petron Corp. will receive tax perks from the government for the P5.5-billion modernization of its refinery in Limay, Bataan.

The Board of Investment (BOI) approved recently the grant of fiscal and non-fiscal incentives for its modernization project.

The BOI, likewise, prequalified Petron under the new liberalized Retail Trade Law. This means Petron will be allowed to put up its own gasoline and service stations all over the country.

Petron is modernizing its oil refinery in Limay, Bataan to comply with the Clean Air Act.

It is alloting P3 billion for a gas or oil hydro-treater to refine and lower the sulphur content of its diesel products.

It will spend an additional P2 billion for a light virgin naphtha (LVN) isomeration facility to meet the new specifications on aromatic or benzene content for gasoline products.

However, the BOI said Petron would not be entitled to all the incentives as its additional infusion is intended only to improve the quality of its fuel and petroleum products.

To avoid double availment of the tax incentives, the BOI said the computation of the incentives would be based on the initial P35.72 billion invested by Petron for its refinery back in 1996.

Petron is a joint venture between the Philippine National Oil Co. and Saudi Aramco.