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Petron of the Philippines is considering shutting down its 180,000 bpd Bataan refinery

10/8/2020

Petron of the Philippines could potentially permanently shutter its 180,000 barrel per day Bataan refinery as it pushes for more government support around existing tax issues. This decision could make the country 100% reliant on imported oil products.

Petron CEO Ramon Ang was cited in saying that the company is preparing to shut down if current talks with the local government do not succeed. Earlier in the year, the government had increased import taxes to pay for Covid-19 costs, and refiners pay excise taxes on crude materials and for any finished products. Importers are only taxed one time, giving them an advantage there.

This statement by Petron could be a type of bluff to get the government to act, and time will tell if this is the case. Bataan is the only remaining refinery in the Philippines, after Shell announced it would shut in its 110,000 b/d Batangas refinery this past August due to the pandemic effect on demand. Batangas is to be converted into an import terminal.