US-based Chevron is aggressively expanding its presence in the Philippines, which it considers its biggest market in Asia, with plans to put up as many as 200 stations over the next five years.
Shahid Ahmed, general manager for sales and marketing support of Chevron Asia Pacific, said the company intended to grow across Asia with plans to add 500 new retail stations to the existing 2,000 stations in the region. The bulk of the expansion is expected to happen in the Philippines, where it markets the Caltex brand of fuel products and lubricants.
“As you know, we have operations all across Asia and three of our largest markets are Thailand, Philippines and Malaysia. The Philippines is actually the largest market that we operate in across Asia so it’s a very large focus for the business. It has a lot of regional attention and a lot of regional support,” Ahmed said.
He also disclosed that a big part of the company’s investment on the marketing side was going to Asia and the Philippines.
“Our focus now is on strengthening and growing our network. We’ve been in the Philippines for more than 75 years so our focus is on reinforcing our business and growing it. And more of that growth is going to come from local partners who can really benefit from partnering with Caltex,” he said.
Chevron was looking to put up most of the 200 stations in the Philippines through franchising, according to Ahmed.
“We’re very much out there looking for new investors to partner with us to grow within the Philippines and we have a lot to offer. We have our lubricants business, our retail business and we also talk about the things we do to support the community we operate in. We’re looking for good investors who want to make good returns and who want to actually develop the community they operate in,” Ahmed explained.
Ahmed, however, raised concerns they had with the Philippine market, including the proliferation of small unbranded sites.
“The challenge is that you cannot really guarantee product quality but we all compete on price. My biggest concern in this market is that there are lots of expansions that do not meet international quality standards,” he said.
Chevron has more than 850 Caltex service stations in the Philippines selling a range of petroleum products, lubricating oils and greases. The company also has 14 facilities, including major terminals, depots and sales offices in the Philippines. Its import terminal in San Pascual, Batangas, forms the hub of its transportation and supply operations in the Philippines.
Chevron also provides jet fuel for airlines at the Ninoy Aquino International Airport.—Amy R. Remo