Flying V sets aside P850-M capex this year

Flying V, one of the most aggressive small oil players in the country, may allot P850 million for its capital expenditures this year.

Flying V spokesman Macky Lopez said the company is planning to spend about P700 million to put up two oil depots in Cebu and Cagayan de Oro and an ethanol plant in Batangas.

About P150 million, on the other hand, will be spent for its network expansion.

The company is planning to put up around 40 more retail gas stations nationwide, most to be constructed as small or the so-called beetle stations (with one tank and one pump). Flying V currently has 110 outlets nationwide.

The new stations would likely be located in the Visayas and Mindanao as part of the company’s efforts to tap other potential market in areas outside Metro Manila, Lopez said.

He added they would be tapping strategic partners to put up the two new oil warehouses and ethanol plant.

The ethanol plant will be located in Brgy. Simlong, Batangas City, Batangas and is expected to produce around 60,000 liters per day.

Lopez said Flying V will also continue to stand by its commitment to take a lead in the promotion of alternative fuel sources to lessen the country’s dependence on imported fuel and help the agricultural sector.

He said they would likewise continue to offer its biodiesel products at discounted prices. "We still offer our pre-blended biodiesel product at the same price as regular diesel, which we started last March. This means a rollback of 50 centavos for every liter of pre-blended biodiesel."

He said with biodiesel, motorists could save up to P160 for every 50 liters, including the increase in mileage.

If mandated, the one percent biodiesel blend would result to savings of P23 billion annually from diesel importation. This would also translate to P4.2 billion in new money for the coconut industry.