Independent player Jetti Petroleum has set aside at least P100 million to further expand its retail network to a total of 120 gas stations by yearend.
MANILA, Philippines—Independent player Jetti Petroleum has set aside at least P100 million to further expand its retail network to a total of 120 gas stations by yearend.
The planned expansion is expected to help strengthen the company’s presence in the local downstream oil market amid growing competition among local players, said Jetti Petroleum corporate affairs manager Leo P. Bellas.
Bellas explained in a briefing last Friday that the downstream oil industry has already become a “very competitive industry” due to the influx of players. This was also the reason why the company posted “flat sales” in the first quarter this year compared to that of the previous year, despite the increase in the number of gas stations.
As of end-March this year, Jetti Petroleum has a total of 100 gas stations, 44 of which are in Luzon, 18 in the Visayas and 38 in Mindanao.
Bellas did not disclose much detail, but he pointed out that last year, 268 million liters were sold, accounting for less than 2 percent of the market.
On a quarterly basis, the volume of products sold averaged at about 67 million liters, he added.
On a monthly basis, Bellas said the Luzon stations’ sales would average at 10 million liters—a figure that they are targeting to increase to about 20 million liters, once the planned gas stations are operational.
To support its planned expansion, Jetti Petroleum recently started the construction of its P1-billion bulk terminal in Mariveles, Bataan, with a rated storage capacity of 68 million liters. This will be the company’s fifth fuel depot.
Once completed, the Bataan bulk terminal will enable Jetti to engage in direct fuel importation in Luzon to supply the requirements of the company’s growing retail network on the island.
The depot will likewise boost the supply chain and overall operations of the 100-percent Filipino-owned oil company. Its retail stations serve as “catalyst for reasonably priced fuel in Jetti’s host communities,” the company said.