New Players Enter Philippines' Deregulated Oil Industry

Strategic Insights -

In a significant development, Malaysia's oil giant Petronas is among 53 new foreign and local companies that have entered the Philippines' deregulated oil industry. These new players, including Total from France, Petroleum Authority from Thailand, Coastal Petroleum from the United States, and others, have helped moderate fuel price increases and infused fresh capital into the economy. According to the Department of Energy (DOE), the new players owned 112 gasoline stations as of November 1999, accounting for a combined market share of 8.6 percent and 18 percent of the liquefied petroleum gas (LPG) supply.

Key Takeaways:

  • 53 new foreign and local companies, including Petronas, Total, and Petroleum Authority, have entered the Philippines' deregulated oil industry.
  • These new players have invested over 10 billion pesos in the economy since November 1999, helping to moderate fuel price increases.
  • As of November 1999, the new players owned 112 gasoline stations, accounting for 8.6% of the market share and 18% of the LPG supply.
  • The entry of new players has triggered increased investments in the downstream oil industry, particularly in bulk storage, LPG, refilling, and petroleum product retailing.
  • Investments are expected to reach 34 billion pesos over the next five years to raise the level of competitiveness in the oil market.
  • The new players will invest in expanding their market share, which is expected to increase significantly over the next five years.

Statistics:

  • Over 10 billion pesos invested in the economy since November 1999.
  • 53 new foreign and local companies have entered the deregulated oil industry.
  • 112 gasoline stations owned by new players as of November 1999.
  • Market share: 8.6% for new players (gasoline stations) and 18% of LPG supply.
  • Expected investment: 34 billion pesos over the next five years.
  • Unleaded gasoline prices in other major cities: 53.41 pesos per litre in Hong Kong, 14.80 pesos in Thailand, and 29.33 pesos in Singapore compared to 14 pesos in the Philippines.
  • Diesel prices: 30.94 pesos per litre in Hong Kong, 12.35 pesos in Singapore, and 11.58 pesos in Thailand compared to 9.90 pesos in the Philippines.

Sources:

  • Department of Energy (DOE)
  • Organisation of Petroleum Exporting Countries (OPEC)
  • BERNAMA