Bataan depot’s closure could choke oil supply
Fears of a fuel shortage surfaced after the Bureau of Customs closed down the country’s fourth largest oil depot on charges of tax delinquency.
In a press conference, Fernando L. Martinez, Independent Philippine Petroleum Companies Association (IPPCA) chairman, said the bureau’s recent takeover of the Oilink International Depot in Mariveles, Bataan, would affect the operation of independent oil distributors which use the depot to store their products.
The bureau said Oilink, the terminal’s operator, incurred tax arrears of about P27 million in 2004 that has risen to P353 million because of penalties.
“The closure of Oilink’s depot facilities hampers the ability of IPPCA members and nonmembers in servicing the requirements of their customers with petroleum products which taxes have been duly paid for and have been released by the proper authorities,” Martinez said.
The depot, which stores up to a million barrels of oil a month, accounts for about 12 percent of the country’s total requirements. The facility services the supply needs of over 500 refilling stations across the country that are mostly run by the small oil companies.
He warned that because of the lock-up the group’s fuel supply could dry up in 10 to 15 days. Although IPPCA may contract the lost supply from other sources, it would take longer and entail additional costs that could jack up fuel prices.
“Why are they doing this to us? Is it because we’re only small companies?” Martinez said.
He said that while the country’s big three oil companies had received similar assessments from the Customs bureau amounting to billions of pesos, their terminals were not closed down.
On July 26, Customs agents led by Commissioner Napoleon Morales and backed up by police seized the depot.
Also affected were companies using the depot, including Cebu Pacific for jet fuel; Ginebra San Miguel for alcohol; Yokohama for diesel; Total, Eastern Petroleum, Flying V, Seaoil and Unioil for fuel oil; and Kajima for the asphalt needs of the Subic-Clark highway.
Gil A. Valera, Oilink’s lawyer, said the company had sought a temporary restraining order against Customs bureau with the Court of Tax Appeals. Oilink has also filed a damage suit against Morales for P1.5 million, he said.
The bureau said it would auction the contents of the terminals on Thursday, when the 30-day deadline for Oilink to pay up lapses.
By Euan Paulo C. Añonuevo Manila Times Reporter
In a press conference, Fernando L. Martinez, Independent Philippine Petroleum Companies Association (IPPCA) chairman, said the bureau’s recent takeover of the Oilink International Depot in Mariveles, Bataan, would affect the operation of independent oil distributors which use the depot to store their products.
The bureau said Oilink, the terminal’s operator, incurred tax arrears of about P27 million in 2004 that has risen to P353 million because of penalties.
“The closure of Oilink’s depot facilities hampers the ability of IPPCA members and nonmembers in servicing the requirements of their customers with petroleum products which taxes have been duly paid for and have been released by the proper authorities,” Martinez said.
The depot, which stores up to a million barrels of oil a month, accounts for about 12 percent of the country’s total requirements. The facility services the supply needs of over 500 refilling stations across the country that are mostly run by the small oil companies.
He warned that because of the lock-up the group’s fuel supply could dry up in 10 to 15 days. Although IPPCA may contract the lost supply from other sources, it would take longer and entail additional costs that could jack up fuel prices.
“Why are they doing this to us? Is it because we’re only small companies?” Martinez said.
He said that while the country’s big three oil companies had received similar assessments from the Customs bureau amounting to billions of pesos, their terminals were not closed down.
On July 26, Customs agents led by Commissioner Napoleon Morales and backed up by police seized the depot.
Also affected were companies using the depot, including Cebu Pacific for jet fuel; Ginebra San Miguel for alcohol; Yokohama for diesel; Total, Eastern Petroleum, Flying V, Seaoil and Unioil for fuel oil; and Kajima for the asphalt needs of the Subic-Clark highway.
Gil A. Valera, Oilink’s lawyer, said the company had sought a temporary restraining order against Customs bureau with the Court of Tax Appeals. Oilink has also filed a damage suit against Morales for P1.5 million, he said.
The bureau said it would auction the contents of the terminals on Thursday, when the 30-day deadline for Oilink to pay up lapses.
By Euan Paulo C. Añonuevo Manila Times Reporter
posted by OlongapoCity Zambales at
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