Petron buys Chevron’s retail LPG business, eyes 40% market share

Oil industry leader Petron Corp. expects to increase its share of the liquefied petroleum gas (LPG) market to more than 40 percent with the acquisition of the retail LPG business of Chevron (formerly Caltex) Philippines Inc.

In a disclosure to Philippine Stock Exchange (PSE), Petron said it has acquired Chevron’s retail LPG business at an undisclosed cost.

"We confirm the transfer of Chevron Philippines Inc.’s LPG retail business to Petron Corp.The transfer entails the integration and re-imaging of the LPG dealership network of Chevron into Petron’s Gasul dealer network and the re-branding of the LPG cylinders within a period of two years," Petron corporate secretary Luis Maglaya said.

Petron public affairs manager Virginia Ruivivar said Petron currently accounts for 37 percent of the LPG market. Before selling its retail LPG business, Chevron accounted for eight percent of the cooking gas market.

The sale of Chevron’s LPG business was somewhat foreseen as it closed down its refinery in Batangas and opted to become just an oil importer.

Randy Johnson, Chevron country chairman for the Philippines and general manager for retail, said the company has considered several options prior to the divestment.

"The local LPG business underwent evaluation for better alignment with Chevron’s global business portfolio" he said.

Chevron’s divestment of its LPG retail business, which serves mostly household consumers, is a part of a larger strategy to focus on its core business of marketing and distributing motor fuels and lubricants products to retail and commercial customers. The deal with Petron was made on the basis of a commitment to sell the dealership network to a reliable and reputable LPG supplier. 

Chevron’s dealer network is being transferred essentially intact to Petron and the transaction is expected to have no effect on the supply of LPG nationwide.