Case Study: Major Players of Fuel Oil in the Philippines

By: Kenneth E. Oiga

BS ME-5th year
Instructor: Engr. Bienvenido Manuntag

Abstract:
The major oil companies hold of the total petroleum products market in the Philippines
continued to decrease over the years as competition at the pump stations tightened as a result of
market deregulation. Major players (Petron Corp., Chevron Phils. and Pilipinas Shell
Petroleum Corp.) got 60.4 percent share of market in 2015 (from 68.9 percent in 2014),
according to data from the Department of Energys Oil Supply/Demand Report.
1. PETRON CORPORATION
Petron Corporation is the largest oil refining and marketing company in the Philippines.
Supplying nearly 40% of the countrys oil requirements, their world-class products and quality
services fuel the lives of millions of Filipinos every day.
Petron corp. operates an integrated crude oil refinery and petrochemicals complex with a rated
capacity of 180,000 barrels per day in Limay, Bataan. Their Integrated Management System
(IMS)-certified refinery processes crude oil into a full range of petroleum products including
gasoline, diesel, liquefied petroleum gas (LPG), jet fuel, kerosene, industrial fuel oil, and
petrochemical feedstock benzene, toluene, mixed xylene, and propylene.
From the refinery, they move their products via barges and marine vessels to 32 International
Organization of Standardization (ISO)-certified depots and terminals situated all over the
country. Through this vast distribution network, they supply fuel oil, diesel, and LPG to various
industrial customers. Petron also supplies jet fuel at key airports for international and domestic
carriers. They have the largest retail network. With nearly 1,900 service stations, they bring their
superior automotive fuels closer to motorists.
They have the most extensive petroleum product line in the Philippines. Always at the forefront
of fuels technology, they continuously pioneer ground-breaking products that tailor fit the
lifestyles of their customers. Petron Blaze 100, for instance, is one of the fewif not the only
commercially available gasoline in the world with a 100 octane rating.
Their stations give a one-stop service experience to travelers, offering amenities including
convenience stores, restaurants, and specialty shops. They operate repair and maintenance
centers to cater to the specific requirements of motorists. Besides selling their lubricants and
specialty products here, these centers are outfitted with modern equipment and manned by
theylltrained technicians. Their LPG brands, Gasul and Fiesta, have been an intrinsic part of their
customers households for many decades. Through their nationwide dealership network, they
offer and deliver them at their doorsteps.

Their commitment to innovation has led us to introduce a variety of Petron Cards to the market.
Each of their cards has been engineered to enctheirage convenience and ensure customer
satisfaction in every swipe. An example is the Petron Fleet Cardthe first microchip-potheyred
fleet card in the Philippines. They operate a polypropylene (PP) plant with a rated capacity of
160,000 metric tons of PP resin annually. They run a lube oil blending plant, which manufactures
their lubricants and greases. They also run one of the most modern blending facilities in Asia,
which enables us to formulate the unique fuel additives they use to produce their premium fuels.
They export various petroleum and non-fuel products to Asia-Pacific countries such as Japan,
India, Malaysia, Singapore, South Korea, Thailand, Pakistan, and even to the United Arab
Emirates. To further expand their international presence, they recently established Petron Oil and
Gas International to run three companies in Malaysia that comprise an integrated downstream
business. Beyond their business agenda, they take their corporate and social citizenship to heart.
They roll out and incorporate programs that address national concerns in education, environment,
and health and human services into their operations to ensure sustainability and contribute to
social development. With nearly 80 years of experience in the oil industry, they continue to be
dedicated and passionate about their vision to be the leading provider of total customer solutions
in the energy sector and its derivative businesses.
FUEL PRICE
Petron INCREASED
1.40/L Blaze100, XCS95, Xtra91
1.40/L Turbo Diesel, Diesel Max
1.45/L Kerosene
2. Chevron Philippines
Chevron is one of the largest investors in the Philippines, with more than $2 billion in capital
investments. They market Caltex fuels, lubricants and other petroleum products. Their network
of service stations, terminals and sales offices forms the backbone of their presence in the
Philippines.
Chevrons geothermal operations in the Philippines help make us one of the worlds leading
producers of geothermal energy. Through a joint venture, they operate steam fields that use heat
from the earth to provide power to plants that serve key population centers in the country. Their
innovations have helped make the Philippines the second-largest producer of geothermal energy
in the world, after the United States.
Chevron holds an interest in the Malampaya gas-to-power project, the first natural gas
development and largest industrial project in the Philippines. From the Philippines, we provide
operational support for Chevron offices on five continents. The workforce supplies transactional,
processing and consulting services in areas ranging from finance to information technology.

Chevron operates through five subsidiaries in the Philippines. Their upstream companies are
Chevron Malampaya LLC, Chevron Geothermal Services Company and Chevron Kalinga Ltd.
Their downstream company is Chevron Philippines Inc. They also operate a business processes
support organization through Chevron Holdings Inc.
Chevron has nearly 700 Caltex service stations in the Philippines. We sell a range of petroleum
products, including Caltex with Techron gasoline, Caltex Diesel with Techron D, kerosene
and jet fuel.
Chevron has 20 supply facilities in the Philippines, including major terminals and depots. Their
import terminal in San Pascual, Batangas, forms the hub of their transportation and supply
operations in the Philippines. Chevron also provides jet fuel for airlines at Ninoy Aquino
International Airport.
Chevron also markets Delo and Havoline lubricants and coolants, along with other
lubricating oils and greases, through distributors to consumer, commercial and industrial
customers.
FUEL PRICE
Caltex INCREASED
1.40/L Platinum95, Silver91
1.40/L Diesel
1.45/L Kerosene
3. PILIPINAS SHELL PETROLEUM CORPORATION
The Shell companies in the Philippines (SciP) represent various companies operating in oil and
gas exploration, extraction, refining and delivery to consumers. Commencing its operations in
1914, SciP has grown to be one of the Philippines largest investors, directly employing over
4,000 people nationwide.
SciP is part of Shell, a global group of energy and petrochemicals companies employing
approximately 93, 000 people and operating in more than 90 countries and territories. Shell helps
meet the worlds growing demand for energy, aiming to do so in economically, environmentally
and socially responsible ways.
Pilipinas Shell Petroleum Corporation (PSPC) is involved in the manufacture, marketing, sales,
supply and distribution of oil productsserving customers in almost every field of transport,
commerce and industry with its wide range of high quality fuels, lubricants, liquefied petroleum
gas, aviation fuel, bitumen and other specialty products. Pilipinas Shell commenced operations
of its first crude distiller in Tabangao, Batangas in 1962 (now an oil refinery since 1994). Shell
also opened a refrigerated LPG terminal in 1983, the first of its kind in Asia operated by Shell
Gas Eastern, Inc. with trading handled in the region by Shell Gas Trading Asia Pacific.

In the business of oil and gas exploration and production, Shell Philippines Exploration B.V.
(SPEX) operates the Malampaya Deep Water Gas-to-Power Project together with its joint
venture partners. Malampaya represents the largest and most significant industrial investment in
the history of the Philippines. It heralded the birth of the countrys natural gas industry, enabling
the supply of clean, environment-friendly fuel and providing 2,700 megawatts of power to Luzon
for a period of 20 years. This represents roughly 40-45% of Luzons power generation
requirements, providing the country a considerably long-term revenue stream to the government,
in addition to considerable foreign exchange savings.
In 2004, Shell set up a pioneering new activity with the establishment of the Shell Shared
Services (Asia) B.V. (now called Shell Business Operations Manila) which provides
accounting, human resources and other business-related processing services to Shell companies
in various parts of the world. Now employing over 3,000 staff, Shell Business Operations-Manila
has been recognised for its operational and compliance excellence.
To further strengthen and support SciPs corporate social responsibility thrusts, Pilipinas Shell
Foundation, Inc. (PSFI) was established in 1982 to serve as the social investment arm of Shell in
the Philippines. PSFI implements various training and community development programmes in
communities nationwide, and on its 25th year in 2007, the foundation surpassed its 1 million
beneficiaries mark. To date, PSFI has benefited over 8.5 million people all over the country
through its community development programmes.
This year, Shell companies in the Philippines is celebrating its 100 years of business presence in
the Philippines and is committed to delivering smarter products and cleaner energy for better
motoring experience for the present and future generations of Filipinos. As a global leader in
power, energy, and gas technology, Shell remains to be a strong promoter of sustainable
development in the country by energizing communities all over the country for a more
sustainable energy future.
FUEL PRICE
Shell INCREASED
1.40/L VPN+ Racing97, VPN+95, FuelSave91
1.40/L VPN+ Diesel, FS Diesel
1.45/L Kerosene
REFERENCES:
http://pana.com.ph/directories/pilipinas-shell-petroleum-corp/
http://www.petron.com/
https://www.chevron.com/worldwide/philippines
https://twitter.com/Petrol_Price
https://business.inquirer.net/209369/major-oil-players-market-share-shrinking