Probe oil retailers violating safety rules, DOE urged

Pilipinas Shell Petroleum Corp. (Shell) is urging the Department of Energy (DOE) to investigate gasoline retailers who are allegedly not following safety and environmental standards.

"We have expressed our concern to the DOE against gasoline outlets which may not be following safety and environmental standards," Shell vice president for finance Rodolfo Naguit said.

Naguit said the law should be applied equally to all. "It would be unfair for those who are following the rules and regulations," he said.

The Shell official said this is probably one of the reasons why some gasoline stations can afford to offer much lower prices.

"Some oil retailers are able to offer much cheaper gasoline or diesel products because they are not spending much on safety and environmental measures," he said.

According to Naguit, they have evidence to prove that some oil retail stations do not observe proper safety and environmental systems and procedures.

"We have conducted our own investigation. We have taken the pictures of these stations that clearly show some violations in safety standards," he said.

Naguit said Shell will coordinate with the majors – Petron Corp. and Caltex Phils. Inc. – to join the fight against these safety standards violators.

Aside from these poor safety standards, the oil firms have been complaining about oil smuggling allegedly being carried out by small oil firms.

The oil companies have been saying that their market has started to narrow down due to rampant oil smuggling in the country.

Earlier, the DOE apprehended an owner of a dock which is being used as an entry point of smuggled oil products.

Areas where oil smuggling is allegedly rampant are Subic, Cebu and Metro Manila.