Latest Stories

Shell: Price discrepancies indicate oil smuggling on the rise


Oil smuggling reared its ugly head last year as Shell Companies in the Philippines noted discrepancies in its computations and the actual retail prices.

“There was a movement last year. Toward the end of the second quarter and then third quarter of 2013, smuggling came back. We suspect that people were anticipating the revamp [at the Bureau of Customs],” said Shell country manager Edgar O. Chua. “Our sales fell and the retail prices fell. But if you compute it, and you compute the supposed landed cost, you’ll see that some players are selling at much lower prices. That’s because they don’t have the 12-percent value added tax.”

Chua expressed optimism on the BOC, now under a new leadership. But he urged the government to continue to pursue changes in systems and procedures.

It is estimated that the government foregoes revenues of up to P60 billion a year due to oil smuggling.

Also, Shell said work on its much awaited initial public offering (IPO) would start once the company makes its final investment decision (FID) for the upgrade of its refinery in Tabangao, Batangas.

Chua said that the company hopes to secure in two to three months’ time the approval of parent firm Royal Dutch Shell Plc. for the P6-billion planned investment to upgrade its refinery, which has the capacity to turn out 110,000 barrels a day. The upgrade will allow Pilipinas Shell to meet the more stringent quality specifications for Euro IV fuels in the near future.

“Assuming that we already have the FID, we will start working on the IPO. As to when we will do that will depend on market conditions. We will push through with the public offering because we have to comply with the law,” Chua said.

The company is pushing for the refinery upgrade to ensure the country’s energy supply and security, Chua said. It will also benefit the country in terms of technology transfer and job generation.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , oil smuggling , retail prices , Shell Philippines

  • DanteCatalino Garcia

    Rice and Oil are being smuggled under our very eyes and our government is unable or unwilling to stop it. It’s more fun in the Philippines

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Healing priest invites political leaders to join ‘prayer for nation’
  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Supper power
  • Condo unit sales boosted Shang Properties earnings
  • ERC mulls over WESM price cap for May, June
  • Whatever happened to the ubiquitous pagers?
  • Huge 2013 net profits seen difficult to surpass in 2014
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Marketplace