Shell allots up to P3 billion for 2026 capex

MANILA, Philippines — Despite ongoing volatility in global oil markets, Shell Pilipinas Corp. is keeping its capital spending steady at P2 billion to P3 billion this year while remaining cautious on investments.

Shell vice president for finance, treasurer and chief risk officer Reynaldo Abilo said the bulk of the budget would go toward upgrading the company’s import terminal and infrastructure to ensure efficient trading and supply operations.

The remaining funds will support the expansion of Shell’s mobility network across the country.

“I think we will be ending at the lower range of that (budget) by the end of the year as we try to optimize our spending given the volatility and the uncertainty in the energy market,” Abilo told reporters yesterday following the company’s annual stockholders’ meeting.

Even with recent rollbacks, domestic pump prices remain elevated as oil companies continue to scramble for alternative supply sources amid the ongoing standoff in the Strait of Hormuz.

The narrow waterway typically carries about 20 percent of global oil and gas shipments, making it one of the world’s most critical energy chokepoints.

Asian refineries – where the Philippines mainly sources its refined petroleum products – rely heavily on crude oil from the Middle East.

“Since the start of the Middle East conflict, Shell Pilipinas has really been focused on ensuring supply security while at the same time continuing to comply with laws and regulations,” Shell president and CEO Lorelie Osial said.

As the country faces an energy emergency, Osial also expressed support for the government’s move to mandate the maximum fuel price increases and minimum rollbacks.

Energy Secretary Sharon Garin has said the declaration of a national energy emergency triggered the government’s authority to impose limits on price adjustments to prevent profiteering.

This week, diesel and kerosene prices went down by at least P9.57 and P13.30 per liter, respectively, while the cost of gasoline rose by P0.47 per liter.

As of May 8, the country’s average fuel inventory stood at 50.7 days, based on the latest available data.