The downstream oil industry is bracing for lower fuel demand in the wake of the 30-day quarantine aimed at curbing the impact of coronavirus disease 2019.
San Miguel Corp. said in a disclosure to the stock exchange it was expecting lower demand for fuel because of decreased consumption by private and public transportation during the quarantine period.
SMC, the parent company of Petron Corp., said the decline in demand “will likely occur for all kinds of fuel such as gasoline, diesel and aviation fuel.”
Petron owns a 180,000-barrel-per-day refinery in Bataan province.
Globally, oil demand has fallen that domestic pump prices declined by as much as P4.50 per liter this week.
Meanwhile, Pryce Corp. said it was expecting consumption of LPG to increase as household members stayed indoors and cooked their food.
“This means that the company’s LPG revenues may increase at least until the COVID-19 situation has been contained and fully-managed,” the company said.
Phoenix Petroleum Philippines said it was very early to assess the impact of the COVID-19 outbreak and community quarantine on its operations.
“The situation remains dynamic and fluid. We saw an uptick in sales as people stock up in anticipation of the community quarantine and lockdown in Metro Manila. This may however, slow down as we anticipate less activity, which could potentially impact our retail business,” Phoenix said.
“In our B2B segment, marine and commercial road transport as well as aviation may be affected. Moving forward, we will continue to put safety as our primary concern. Our utmost priority is to ensure employees and their families, customers, business partners, and communities remain informed, safe, and healthy,” the company said.
Phoenix said it was not expecting disruptions in the supply chain as the company ensured the security of fuel and LPG supply through the efforts of its Singapore trading office.
“Our business continuity plans are mobilized and communicated to customers and other stakeholders. Supply delivery for both commercial and retail customers continue within government and company protocols. These extend to our service stations to ensure the safety and welfare of our employees and motorists,” it said.
“Meanwhile, Phoenix LPG is prepared for the uptick in the household consumption of LPGs as more people prepare meals and dine at home,” Phoenix said.
Pilipinas Shell Petroleum Corp. also assured that its deliveries and operations remained unhampered during the quarantine period.
“Shell stations remain open in areas affected by community quarantine. The corporation wishes to assure the public that the station staff and facilities are taking precautionary measures to ensure the safety of customers and visitors through regular sanitation and disinfection, readily available hand sanitizers, soap and running water and strict self-sanitation for staff,” it said.