The Securities and Exchange Commission (SEC) has approved the creation of the new company, Petron Marketing Corp., a 100-percent subsidiary of Petron.
Through the new unit, Petron will start setting up service stations in high-traffic, high-visibility sites such as expressways and national roads, initially targeting 30 stations over a five-year period.
The company said it aims to promote the Petron brand and image, while introducing innovations beyond the present services available in its current network of service stations.
The Board of Investments (BOI) has earlier approved Petron’s application to establish a retail enterprise under the Retail Trade Liberalization Act.
Petron, jointly controlled by the Philippine government and Saudi Arabian Oil Co., was formerly not allowed to engage in direct retailing due to the extent of its foreign ownership.
The company said directly operating its own service stations will have a positive impact on its bottomline. "It will allow the company to capture other revenue streams which include food and other consumer products and the direct franchising of complementary quick-service restaurants," Petron said.
Petron has earmarked P6 billion for capital expenditures this year. It will be undertaking projects to comply and meet with the provisions of the Clean Air Act.
It will spend around P3 billion for gas or oil hydrotreater in refining its petroleum products to meet the allowable sulphur content of its diesel products.
Petron has also allotted P2 billion to install a new facility called light virgin naphtha isomeration to meet the specifications of aromatic or benzene content of gasoline products.
Meanwhile, another P500 million to P600 million will be used to finance the expansion of the company’s service station network, channeled through its new retail arm.