Oil price hike expected once Pandacan depot moves

By , on November 26, 2014

Shutterstock photo
Shutterstock photo

MANILA – Energy Secretary Jericho Petilla said that the public should expect oil price hike once Petron and Shell move their refineries from Pandacan to Batangas.

During an interview, Petilla mentioned that the government will have no control over the prices given that the industry is deregulated.

“Our primary concern would be logistics since majority of Metro Manila’s oil supply come from Pandacan. Meaning, all the gas stations of Petron and Shell get their supply from there. If Pandacan will be closed down and you will need to get from Batangas, this means that consumers will also pay for the delivery cost of the oil,” Petilla explained.

He said that he has no idea as to how much the increase would be.

On the other hand, Vice Mayor Isko Moreno said that they are confident that the price hike will be temporary.

While the city may lose about P50 million to P100 million in taxes annually, Moreno said that the city will be able to make up for it through property taxes from the new residential buildings that will be built in place of the depot.

Moreno said that there will be about 12 hectares of land available once the depot is transferred.

“Property value will increase once we introduce vertical development. We already made the area, based on zoning as a commercial area. Now it costs P30,000 to P40,000 per square meter,” shared Moreno.

He added that the workers from the oil depot may be hired again given that they possess specialized skills.

He added workers to be displaced by the closure of the oil depot will likely be re-hired since they have specialized skills.