The Bureau of Customs (BoC) announced Monday that it already cornered the commitment of the country’s other oil industry players for increased importation, purportedly to alleviate fears of supply shortages that might be triggered by the impending closure of the Tabango refinery of Pilipinas Shell Petroleum Corporation.

“Three weeks ago, I sent letters to Petron (Corporation), Chevron (Philippines), Total (Philippines), PTT and the other smaller players, giving them notice of the supply situation because of the Shell case. We asked them if they can increase their importations, and they have so far given us positive response,” BoC Commissioner Napoleon Morales said in a telephone interview.

When asked, the oil companies noted that they were asked on volume forecasts for their importation, but they stressed there have been no concrete manifestation if they can fully plug whatever supply void will be triggered by Shell’s refinery closure.
The country’s second largest oil industry player controls more than 30-percent of the market.

“The market will definitely adjust but we are not very sure if the needs of the industry and consumers can be covered fully. We might need to do more frequent importations, but there are factors to be considered,” one of the industry’s key players said.

If the Court of Tax Appeals (CTA) will not issue an injunction at the lapse of the temporary restraining order (TRO) on the Shell case Tuesday (February 9), Morales said he will implement seizure of the catalytic cracked gasoline (CCG) imports of Pilipinas Shell Petroleum Corporation.

“I have to implement the law, so if there’s no injunction from the Court, that will be our action,” the BoC chief said. Shell, for its part, indicated that it already secured the go-signal of its principals for the closure of its refinery if the government seizes its CCG imports; noting that such move will just be a “natural consequence of events.”

Energy secretary Angelo T. Reyes called the parties involved – Pilipinas Shell, BoC and the Burea of Internal Revenue (BIR) for a meeting on Monday (February 8), but none of them could ascertain if the case would end up in any reasonable or acceptable conclusion.