The oil industry on Friday welcomed President Rodrigo Duterte’s decision to extend for 15 days the enhanced community quarantine in high-risk areas, including the National Capital Region, and the easing of restrictions in low-risk areas.
“COVID-19 crisis of mankind, I think we can survive this alive and healthy. We should thank God,” Petron Corp. president Ramon Ang said when asked for comment.
Duterte allowed the partial operation of transportation systems under the general community quarantine for low-risk areas which signaled some kind of relief to oil companies whose demand plunged significantly during the ECQ.
“We support the decision of the IATF on the ECQ extension because this is a more sustainable approach to economic recovery. We welcome the IATF’s decision to relax the quarantine restrictions in certain areas of the country because this begins the recovery process already. We are still hopeful that the situation will slowly get better after this,” Unioil Philippines president Kenneth Pundanera said.
Phoenix Petroleum Philippines senior vice president Raymond Zorrilla said in general, the extended ECQ would be beneficial for the safety and health of the public.
“We do hope it will alleviate the plight of the energy sector as there was decision to resume, under certain conditions, public transportation, flight operations, construction and other industries requiring fuels for their respective operations,” Zorrilla said.
The liquefied petroleum gas sector suffered a 30-percent market loss since the ECQ started on March 17, according to Arnel Ty of Omni Gas.
“Due to the lockdown that resulted in ‘stop operations’ of many manufacturing companies, including essential product manufacturing, 40 percent of LPG dealers and outlets stores were forced to close down,” Ty said.
He said many LGUs insisted that even essential product establishments should be closed while LPG delivery truck drivers were threatened to be arrested, specifically in Cebu province.
“For fuel white products [diesel, gasoline, jet fuel], sales were already down by 75 percent in terms of volumes,” Ty said, adding that around 70 percent of workers were on forced leave because of the closure of gasoline stations.
“Effect on the employment for LPG, 40 percent of our workforce are on forced leave, work from home is not applicable, so we implement all legal leave and already release their 13th months,” he said.
Ty said the contract price for LPG declined by 53 percent to $236 per metric ton in April from $490 per MT in March.
“This coming May, we are looking at a slight recovery of CP price or price increase of $50 to $100 per MT.
He said global demand for LPG declined by 30 percent, compared to 80 percent for white petroleum products.
“The outlook for crude oil is grim for month of May,” Ty said.
Fernando Martinez, EC Gas president, said the industry would comply with the directive of the president.
“We will continue to support whatever the president and the Cabinet will prescribe and we will be ready for eventual normalization,” Martinez said.