Petron Freeport Corp., a unit of oil refiner Petron Corp., reported Wednesday double-digit growths in sales and profit during the first six months of the year.
The unit registered a 14-percent increase in sales volume to 10.5 million liters and a net income growth of 20 percent to P48.7 million in the six-month period.
The company operates service stations inside Subic Freeport Zone, where locators are exempt from national and local taxes, including excise taxes.
“PFC’s performance shows that in an environment where the playing field is leveled, oil companies, or any business for that matter, can thrive. It is worth noting that while PFC’s Subic stations continue to grow, domestic volume for the rest of parent Petron has been declining,” Petron said in a statement.
Subic Freeport allows locators to engage in a healthy competition where prices at almost at the same level.
There are large retail price disparities of as much as P10 to P15 per liter on average outside the free port zone.
Petron said the disparities are a clear indication that smuggled oil finds its way in several parts of the country. Petron owns the country’s biggest oil refinery in Bataan.
The company said it would continue to push for a level playing field in the industry where illicit trade, which deprives government of much-needed tax collection and consumers of quality fuel products, is not allowed to thrive.
The oil company added that its operation in Subic showed that deregulation and competition would only truly work if rules on taxation and even product standards were fairly applied to all.
PFC operates two service stations with convenience stores, and leases to several non-fuel locators.
Petron president Ramon Ang earlier said imported fuel should be taxed from the source instead of after being sold.
“Fuel marking should happen so that there is level playing field. Once fuel arrives in Subic or each port, it should be taxed immediately, not after it is sold. How can they compute that because now it is taxed once sold and not before,” Ang said.
