The share of the new players in the oil industry has been levered up to 14.2 percent in 2005; with the aggressive marketing strategy they have been employing, especially in the liquefied petroleum gas (LPG) business.
This was divulged by Fernando L. Martinez, chairman of the Independent Philippine Petroleum Companies Association (IPPCA) as he noted that they posted relatively good competition against their giant counterparts last year.
"The bigger share we have been getting is that of LPG because competition in that area is brisk," he said.
It would be noted that part of the aggressive marketing stance employed by the new oil firms is on promoting the use of alternative fuels, as blend to their products, primarily coco methyl ester (CME) for diesel and ethanol for gasoline.
Flying V, for instance, is one of the most aggressive companies to market CME; and the company’s chief executive officer Ramon F. Villavicencio vouched that this help boost their sales last year.
Aside from offering CME-blended gasoline in their Metro Manila gasoline stations, Flying V has also spread it to their provincial outlets, primarily Baguio and various provinces in Luzon.
On LPG, Martinez noted that Liquigaz has already surpassed the market share of major player Caltex Philippines, Inc.; and cued in that such is a good indication of probable market shift from the traditional suppliers.
There have been earlier assumptions that Caltex is also losing out in its retail market share; and this is being attributed to the company’s decision to close down their refinery two years ago. This, however, has already been refuted by company executives.
The latest data made available by the Department of Energy (DoE) has shown that the US oil firm’s market share has been slashed from 19-percent in 2003 to just 15.9 percent as of the middle of last year.
Caltex, a local subsidiary of Chevron Texaco Corporation, closed down its 50-year stretch of refining operations in the country and just converted its facility into P750-million oil import terminal.
A closer look at data reveals that dominant player Petron Corporation is the one gaining advantage in the competition rink; with it snatching more of the market share lost by industry rivals.
The oil firm is in fact currently bracing for further upgrading of its refinery so it can cater both to any expansion in demand, both in the domestic and overseas markets.
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