Independent players gaining bigger share of local oil mart

MANILA, Philippines - The market share of the smaller oil companies has been steadily increasing, according to an industry official.

Independent Philippine Petroleum Companies Association (IPPCA) chairman Fernando Martinez said as of end-June this year, their group has accounted for more than 20 percent of the local oil market.

Martinez, who is also chairman of Eastern Petroleum Corp. (EPC), said this share stood at about 14 percent a few years back.

Aside from EPC, other members of IPPCA are: Seaoil, Flying V, Chemrez Technologies, Filoil, Filpride, CityOil, IEPI, Oilink International Corp., Unioil Petroleum Philippines Inc. and Pryce Gases Inc.

“There are over 1,000 gas stations belonging to independent players now,” he said.

The IPPCA official made this statement to dispute suggestions that there is no competition in the oil market.

“How can they say that there is no competitive oil market now? The number of independent players are steadily growing, in fact, eating up a portion of the oil majors’ market,” Martinez said.

President Aquino had earlier ordered a review of the oil deregulation law in a bid to ensure that there is true competition in the oil market.

Martinez said stiff competition among oil players is resulting in better priced petroleum products. For instance, he said there was a noted difference in prices in Metro Manila and in the provinces such as Cebu, but with the entry of more players, pump prices in the province are now at par with that of Metro Manila.

“In Cebu and even in Davao, more than a year ago, there was a P3 to P4 per liter difference in prices in Metro Manila. Now the prices are the same due to influx of independent players in these areas,” he said.

Martinez’s observation was echoed by Energy Secretary Jose Rene Almendras.

In a recent speech during an Energy Forum in the Visayas, Almendras showed data on the comparative pricing of fuel pump prices in Cebu against pump prices in Metro Manila.

He noted that contrary to claims, pump prices in Mandaue and Talisay cities are cheaper by 30 centavos to P4 per liter compared to those in some cities in Metro Manila.