Unioil to set up 30 new service stations this yr

New player Unioil plans to set up 30 new service stations to bring its network to 41 service stations by yearend. Unofficial rough estimates put the total cost of establishing the 30 service stations at approximately P435 million.

In the first quarter of the year, Unioil will be investing a total of P79 million for the establishment of six service stations in Luzon. The six stations will be located in Dalahican in Lucena City, A. Bonifacio in Quezon City, Atimonan in Quezon province, Nagcarlan in Laguna, Caloocan City, and Lemery in Batangas.

The Lucena City and Atimonan service stations will cost P20 million each, while the A. Bonifacio station cost P15 million. The three other stations will cost P8 million each.

"We will pursue our expansion projects this year with the company's target of 30 new service stations this year," Unioil corporate development officer Jaime F. Sison said.

Meanwhile, Unioil's facility in Mariveles, Bataan is expected to be operational in the first quarter of the year. The facility, which features a multiple-span compact pipe support bridge, has a capacity of 1.5-million barrels of various petroleum products.

Unioil officials said over 50 percent of their sales are diesel fuel. Aviation, bunker fuel, premium and unleaded gasoline account for the balance.

New players in the oil industry control nearly 11 percent of the diesel market for industrial users while their share of the gasoline market is a mere four percent.

Overall, new players like Unioil, Total Petroleum Philippines Corp., Eastern Petroleum, Subic Bay Distributors Inc., and Mobil Oil, account for a little more than eight percent of the entire market.

New players have to maintain lower prices to be competitive in an industry which was recently deregulated. The major players in the local oil industry are Caltex Philippines Inc., Pilipinas Shell Petroleum Inc., and Petron Corp.