Phoenix Petroleum gets perks for depot project in Batangas

MANILA, Philippines - Phoenix Petroleum Philippines Inc. has received project perks for its 50.4 million-liter storage terminal inside the Phoenix Petroterminals and Industrial Park in Calaca, Batangas.

Phoenix president Dennis Uy said the project has been classified as “new industry participant with new investment in storage, marketing and distribution of petroleum products under Republic Act 8479 (Oil Industry Deregulation Law).

The company’s first (and largest nationally) Luzon-based storage facility was initiated in 2008 and began commercial operations last February 2010, servicing its growing retail network and commercial and industrial customers in Luzon.

The incentives granted by the Board of Investments include a non-extendible five-year income tax holiday on all on-site revenue activities, duty-free importation of capital equipment, spare parts and accessories for a certain period after start-up, and real property tax exemption on equipment and machinery, among other benefits. 

In addition to the new Calaca facility, the company filed an application with the BOI for the registration of its additional investment comprising two new storage tanks for petroleum products with a total capacity of 7.4 million liters located inside the Phoenix bulk depot in Davao City. 

The Davao depot’s original 6.3 million liter capacity (registered with the BOI in 2006) already enjoys the same incentives available under the Oil Industry Deregulation Law. 

The BOI likewise approved the application for the additional investment in Davao and is evaluating the same. 

The company’s investments in storage facilities are expected to be sustained in the coming years as this presages its planned expansion of its retail station network in selected key trade areas around the country. 

Phoenix currently operates both owned and leased storage facilities with total capacity in excess of 75 million liters and plans to increase this by at least 50 percent in the next 12 to 18 months. 

This program opens up more opportunities for it to avail of further incentives provided under the Oil Industry Deregulation Law.

Under this system of continuously additions to its storage infrastructure and registering the new capacity with the BOI, the company ensures that the income tax holiday benefit rolls forward to favorably enhance its earnings per share.

The oil firm is a leading domestic independent petroleum company engaged in the storage, hauling and distribution of petroleum products in the Philippine market through its national retail network and to institutional accounts.