Oil firms to give PUVs fuel price discounts

Petron Corp., Phoenix Petroleum Corp., and Pilipinas Shell Petroleum Corp. agreed to give public utility vehicles fuel price discounts to mitigate the impact of the Tax Reform for Acceleration and Inclusion law.

The companies signed a memorandum of agreement with the Department of Energy on Thursday.

The department hopes that PUVs would no longer ask for a fare increase once the fuel price discount is in place.

During a press conference after the signing ceremony in Taguig City, Energy Assistant Secretary Bodie Pulido said the three oil companies’ initiative was purely voluntary and part of their corporate social responsibility programs.

Petron Corp. chief financial officer Emmanuel Erana said the company will give PUVs a P1 per liter discount, initially in 500 stations in Luzon.

Phoenix Petroleum is offering the same discount in 150 stations, said its vice president for External Affairs Raymond Zorilla.

Pilipinas Shell targets to implement the discount in 50 percent of its 1,000 retail stations nationwide.

Market conditions will show if Petron and Phoenix will increase the P1 discount or included more stations, the companies’ respective officials noted.

Moreover, five more oil companies are also initiating a discount program for public utility vehicles (PUVs).

The Department of Energy (DOE) is signing a memorandum of agreement (MOA) with five other oil companies next week, Energy Assistant Secretary Bodie Pulido said on Thursday.

Pulido did not identify the companies as negotiations are still ongoing.

Petron Corp., Phoenix Petroleum Corp., and Pilipinas Shell Petroleum Corp. signed an agreement with the DOE on Thursday, implementing a P1 per liter discount on fuel products as part of their corporate social responsibility program.

Pulido said the five other oil firms were supposed to join Shell, Petron, and Phoenix, but were not able to make it due to some legal procedures and clearance requirements.

“They’re interested in joining that’s why we may have another MOA signing later on ... They just have some internal procedures they have to finish,” Pulido noted.

The DOE hopes that PUVs would no longer ask for a fare increase once the fuel price discount is in place.

The government did not offer any incentives to oil companies implementing the fuel price discount, Pulido said.

“It’s purely voluntary. We’re very happy about their participation,” he said.