PILIPINAS Shell Petroleum Corp. (PSPC) said it will temporarily shut down its refinery operations for approximately one month following the steady decline in local product demand and the slump in regional refining margins brought by the coronavirus pandemic.
In a disclosure to the Philippine Stock Exchange, the company said the shutdown which starts sometime this month will also serve as an opportunity to conduct proactive maintenance activities in the refinery, as it assured that compliance with the minimum inventory requirements of the government will be observed.
“The temporary shutdown will help insulate the company from further potential drops in refining margins and will also aid in its cash conservation initiatives. Nonetheless, the refinery will retain the flexibility to do a start-up immediately should market and demand conditions improve and stabilize,” PSPC explained.
The company added its North Mindanao Import Facility (NMIF) has also enabled the flexibility to switch from refinery production to full import of petroleum products to safeguard the continuous and cost-effective supply of high-quality fuels to the country.
“The joint operations of the NMIF and the refinery as import terminals, coupled with the company’s resilient and efficient supply chain will help ensure that the supply of Shell fuels remains uninterrupted to serve the needs of the Filipinos,” the oil retailer said.
PSPC’s statement came after President Duterte imposed an additional 10 percent duty on all imported crude and refined petroleum products to raise more funds for the ongoing government efforts related to the coronavirus disease.
PSPC currently has a retail network of 1,126 sites in key locations and according to the Department of Energy, the company had a market share of 17.93 percent as of first half 2019.
