MANILA, Philippines — “There is no gas shortage.” This was assured by Malacañang on Saturday amid the closure of 35 gasoline stations of Shell Philippines in Metro Manila.
The Palace assurance was echoed by Chevron (formerly Caltex) and Shell Philippines.
Chevron (formerly Caltex) Communications Manager Toby Nebrida said there is ample supply of fuel but getting the product to retail stations in Metro Manila is the challenge in the light of the extended closure of the Batangas-Manila (Bat-Man) pipeline of the First Philippine Industrial Corp. (FPIC).
Deputy Presidential Spokesperson Abigail Valte added that the government continues to effect contingency measures to step up oil delivery in the metropolis following the closure of the First Philippine Industrial Corp. (FPIC)’s pipeline, which is being used by both Shell and Chevron.
“Hopefully, that would be resolved soon so their supply can be normalized,” Valte said. She however assured that “there is no gas shortage.”
Valte explained that though 40 percent of the oil supply in Metro Manila comes from Shell and Chevron, both of which are affected due to the closure of the FPIC pipeline from oil leaks, the metropolis still has other sources of oil.
She said half of the oil supply comes from Petron while the remaining 10 percent comes from the independent oil players.
“In effect, the closure of the FPIC pipeline has affected Shell and Chevron but we still have others that provide oil supply,” Valte said.
“We continue to effect contingency measures to step up the delivery and to address the closure of the pipeline,” she added.
As of Friday, 35 Shell gasoline stations have been closed and are operating on a rotational basis due to the closure of the FPIC pipeline. The government has allowed more land-based deliveries of oil supply as a measure to allay fears of fuel shortage.
Not being able to use the 117-kilometer pipeline, which connects the Batangas port to the Pandacan oil depot on Jesus Street in Pandacan, Manila, has translated to higher delivery costs for oil firms, particularly Chevron and Shell.
The two firms were the ones using the fuel pipeline before it was closed due to leakage last October 28. Since then, both companies have resorted to trucking and barging as contingency measures in transporting their products.
But transporting fuel via trucks and barges to the different retail stations in Metro Manila have turned into a logistical nightmare for the oil giants. “It is very difficult to manage logistical problems,” Nebrida added.
Shell Spokesperson Bobby Kanapi aired a similar view that his firm is experiencing a delivery backlog wherein Shell petroleum products aren’t reaching the dried- up gas stations in Metro Manila and the rest of the country fast enough.
Some 200 trucks are now delivering fuel daily to over 180 Shell gasoline stations in the metropolis. Kanapi said that 35 Shell stations have already shut down due to product run outs last Friday.
Chevron, on the other hand, has more than 120 retail stations in Metro Manila.
Meanwhile, Undersecretary Zenaida Monsada, oil industry management bureau chief, said that the Department of Energy (DoE) is closely monitoring the supply situation of Chevron, Shell and even that of other oil players unaffected by the pipeline closure.
The DoE also believes that there is no fuel shortage in Metro Manila despite the temporary shut down of some Shell gas stations.
“Energy Secretary Jose Rene Almendras said there is no difficulty in oil supply as far as motorists are concerned,” Monsada added.
The official said that the affected oil firms are now prioritizing the delivery of main grade products, which include diesel and the cheaper varieties of gasoline.
Madel Sabater & Ellson Quismorio, Manila Bulletin