Petron ends contracts of 21 ‘unscrupulous’ service station dealers


MANILA, Philippines—Petron Corp. has terminated the contracts of 21 service station dealers for erring practices, such as obtaining their fuel supplies from other sources with questionable quality.

These fuels, according to Petron, are being passed off as Petron products “to the detriment of the consuming public who unwittingly load their vehicles with substandard products.”

“It is our duty to make sure the consuming public only gets Petron’s top-of-the-line fuel and lubricant products whenever they go to a Petron station. We do not tolerate these illegal activities and we will continue to go after unscrupulous dealers within our network to ensure the integrity of the Petron brand,” company vice president for national sales Archie B. Gupalor said in a statement issued Tuesday.

According to Petron, it discovered the illegal activities of these service station dealers after a thorough investigation backed by regular readings of the station’s dispensing pumps, which showed that the quantity of products sold at the stations was greater than the quantity purchased by the dealers from Petron.

Regularly checked

Petron’s pumps, which are equipped with monitoring systems to determine the volume dispensed, are regularly checked by Petron representatives as part of the company’s standard operating procedure. Following this discovery, all Petron paraphernalia and equipment have already been pulled out.

To underscore the seriousness of its efforts to go after erring dealers, the company recently filed criminal charges against a dealer in Bogo City, Cebu. The Bogo City Prosecutor’s Office found probable cause on allegations by Petron that the dealer committed criminal acts of trademark infringement, unfair competition, and false designation of origin.

“From jurisprudence, unfair competition has been defined as the passing off or attempting to pass off upon the public of the goods or business of the one person as the goods or business of another with the end and probable effect of deceiving the public. The essential elements of unfair competition are: confusing similarity in the general appearance of the goods, and intent to deceive the public and defraud a competitor. All of these elements without a doubt exist in this case,” a resolution penned by Bogo Acting City Prosecutor Ivy A. Tejano stated.

5 years’ imprisonment

If found guilty, the dealer faces imprisonment of up to five years and a fine of up to P200,000.

Over the past years, the oil industry has been beset with unscrupulous activities including product adulteration and rampant smuggling. Unabated smuggling has caused illegal dumping wherein station dealers are enticed to get cheaper fuels and pass them off as branded products, the oil firm said.

“We wish to reassure the motoring public that we have robust systems and procedures in place to detect and stop these illegal activities,” Gupalor said. “We continue to deploy the latest technologies and competent personnel at the service station level to ensure that consumers are getting what they pay for.”

Petron currently maintains the largest retail network in the oil industry with over 2,000 service stations across the country as of end-2012.

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  • Saint Luci

    they should post the list of these stations para maiwasan natin.

    I know they need to be proven guilty in court. then again, if petron already ended their franchise a court thing is just a formality.

  • intsikbeho

    un napaka gandang kotse ko pag kinargahan ng contaminated na blaze eh tinotope. kelangan talaga bantayan yang mga stasyon niyo!@#

  • pj2003

    Petron must also check calibration of their fuel pumps regularly. I just recently noticed that Petron stations do not have the same discharging time for the same amount of diesel I bought. Hope I was not short change by some unscrupulous retailer.

  • PinqueMac

    matagal na yan na ginagawa ng caltex at shell pero di lang lumabas sa newspaper ang mga ginawagaw nila.  

  • Melvin_A

    What about other petrol o gasoline stations. Paano tayo nakakasiguro na ang quantity ng gasolina o diesel na inilalagay sa ating mga tangke ay tama ang sukat at walang halong ibang chemical. Sana ang ating DOE ay tuloy tuloy ang pag audit ng mga ito para sa anumang tiwaling gawain ng dealer. Sobrang mahal ang langis ngayon.

  • Geo Adao

    This is a great move for Petron. I have now reasons to continue using their products for my car.

    • Melvin_A

      Very good ang move ng Petron sa pagaalis ng mga unscrupulous operators. Sana ang mga ibang kumpanya ng langis ganoon din ang gawin.

  • turin55555


    I want to know if the Petron station where I usually patronize is involved. 

    • JunPyo123

      Well, I presume when the Petron station where you usually re-fuel becomes not Petron anymore (since according to the news all Petron paraphernalia and equipment have already been pulled out), it’s one of those unscrupulous dealers.

  • daniel_ksa

    I was a loyal Petron customer since it is affiliated with SM Advantage Card. Not anymore. Lately, I had a “check engine” warning on the dashboard of my new car. Turned out my fuel filter needs replacement due to accumulated dirt from the fuel line.

  • mynnyx

    paano mahal naman ang tinda ng petron magkano lang ang kita ng dealer……………

    • INQ415

      lol what an excuse

    • Chris

      di lumipat ka sa ibang kumpanya. ang dami dami dyan.

    • ed_nique

      still does not justify what they did

  • Alex

    When will Shell follow?

    • PinqueMac

      matagal na nila ginawa yan.

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