Unioil to BOC: Release diesel shipments

MANILA, Philippines – Unioil Petroleum Corp. said that the company had paid all the necessary taxes covering the importation of the 46-million liters of diesel which was placed on hold by the Bureau of Customs (BOC).

“We have paid all our taxes,” Unioil Petroleum general manager Chito Medina-Cue said. “The problem really is due to delays in processing by the Bureau of Customs.”

Unioil officials said that they were prepared to make public all the invoices and documents to show that they have fulfilled their obligations, but did not reveal the amount of taxes they paid.

The firm appealed to government to speed up the release of their products because demand is nearly outstripping existing supplies in Unioil stations.

The appeal came as Medina-Cue clarified that Oilink International Corp. and Unioil are two different companies, although the two have an existing terminaling agreement wherein Unioil stores its imported petroleum products with Oilink International.

The BOC had ordered Oilink International to pay P2.7 billion in penalties for discrepancies in tax payments. Oilink maintains an oil depot in Mariveles, Bataan.

As to the question of cross-directorships in the two companies, all Medina-Cue had to say was that “it was normal in business that these things happen.”

There were reports that some of the Unioil stations were forced to turn away customers due to lack of fuel.

Medina-Cue admitted that the demand had been unprecedented.

“Sales have increased between 500 to 600 percent,” Cue said.

He assured the public that the company still has enough inventory to meet the demand, despite delays in the release of their diesel imports.

Unioil claims that prior to the P3-per liter rollback of their pump prices, they were making deliveries every three days. “Today, we make daily deliveries (to the gas stations),” he said.

Additional supply is coming from their depot in Manila and other warehouses to meet the demand of the public for cheaper petroleum products.

Unioil Petroleum initiated a P3-per liter rollback in gasoline prices and P2 per liter for diesel last Sept. 19, at a time when most oil firms declared a P1-per-liter rollback. Other oil firms, however, refused to comment on the unusual price rollback implemented by Unioil.

However, Pilipinas Shell officials were shown on television news programs saying that their stations located near Unioil stations would likely match the latter’s price rollback to remain competitive.