PALO, LEYTE, Philippines — The Department of Energy has started granting gasoline station loans to promote retail competition in the downstream oil industry and to encourage and support new industry participants or local government units interested in putting up gas station business in areas without gasoline stations.
Director Zenaida Monsada, chief of DOE’s Downstream Oil Industry Management Division, gave this information during the multi-sectoral advocacy on downstream oil industry forum, held recently at the Leyte Oriental Hotel in this town.
One of the pillars of deregulation is to encourage the entry of new industry participants, the reason why the Gasoline Station Lending and Financial Assistance Program was introduced, Monsada said.
To avail of the credit assistance, borrowers must first complete the two-fold program on management and skills training in the retailing of petroleum products for the establishment, operation, improvement, management and maintenance of gasoline stations within the current deregulated environment.
The financial assistance covers the retailing of all petroleum products sold in gasoline stations, including LPG.
Monsada said the amount earmarked for the program is 94 percent of P300 million or equivalent to P282 million. This Program Fund will be made available by the Philippine Amusement and Gaming Corporation (Pagcor) through the DOE and administered by the Development Bank of the Philippines.
Monsada said applicants for the loan must own the land where the gasoline station will be erected will not exceed 50 percent of the total project cost or P5 million, whichever is lower.
The maximum term of the loan will be seven years and paid in monthly installments; provided, that the first installment is due within six months from the date of initial release of the loan proceeds, Monsada added. —-(FREEMAN)