The Board of Investments (BOI) has approved a P287-million project of Seaoil Philippines, which increased the capacity of the company’s oil depot.
In a statement, the BOI said it had approved the registration of Seaoil’s four-storage tank oil depot in Davao del Sur with a combined capacity of 36.9 million liters, containing both gasoline and diesel fuels.
The company, which the BOI said already offers one of the lowest pump prices of fuel in the southern Philippines, might be able to further cut its diesel prices given the additional supply.
“The company reported that with the additional depot capacity, its diesel prices could possibly drop by some 10 percent, or about P5 cheaper than the prevailing prices,” the BOI said.
The project qualified for bulk marketing of petroleum products under the special laws list of the Investment Priorities Plan (IPP), particularly the Downstream Oil Deregulation Act of 1994.
The IPP refers to a list of business activities preferred by the government, enticing investors in these projects by offering tax incentives such as some years of income tax holiday.
The project already began operations in September this year, giving the company an additional 36.9 million liters of gasoline and diesel to its existing 41.050 million liters of storage in the southern part of Mindanao.
This totals to 78.150 million liters of fuel capacity, which is already more than enough the daily fuel requirement of the country, according to BOI Managing Head Ceferino Rodolfo.