Perez urges ‘Big 3’, Manila city government to resolve Pandacan oil depot issue

Energy Secretary Vincent S. Perez is urging the Big "3" oil companies – Petron Corp., Pilipinas Shell Petroleum Corp., and Caltex Philippines Inc. – and the Manila City government to settle within this month the issue of relocating the Pandacan oil depot.

Perez pointed out that the six-month business permit issued to the oil companies to operate the facilities will expire by the end of this month.

Perez said "we are pressed for time in trying to resolve this problem. I, therefore, urge all parties concerned to look beyond their respective interest and to assess the impact of the immediate relocation from the point of view of public interest."

"While public safety is a major concern that should be give priority, equal attention should also be given to other national concerns such as security of fuel supply and possible negative effect of the fuel prices," he added.

The energy chief noted that the Pandacan oil terminal supplies almost 90 percent of the fuel needs of Metro Manila and neighboring provinces of Cavite, Laguna, Bulacan, Pampanga, Tarlac and Nueva Ecija.

The premature closure of the terminal "is projected to cut fuel supply by as much as 40 percent, which may trigger a shortage of oil supply in the said areas," he said.

Perez also pointed out the cost of such premature relocation is likely to be passed on to the consumers through possible increases in oil prices.

According to Perez, relocating the oil terminal in places outside Metro Manila at this time is also deemed to increase traffic congestion. An initial study by the DOE showed that a much farther distance of alternative supply sources would result in longer tank truck turnaround, translating to an increase in tank truck requirement.

Currently, a total of 800 tank trucks ply the routes of Metro Manila and nearby provinces daily. This may increase to 1,200 if the depots are located at a much farther distances. The study also noted that this could increase security risks during transport.

Perez said he is conducting separate dialogues with and mediating between the Manila City Mayor and the oil companies to resolve the matter.

He also urged the oil firms to immediately put into action the so-called phased scale-down of their Pandacan oil terminals.