- Pilipinas Shell has permanently closed its refinery in Tabangao, Batangas City
- In a statement, Shell explained that they will shift to importation since the price of fuel is lower than or almost equal to the cost of refining their own crude oil
- In the first half of the year, Pilipinas Shell recorded a net loss of P6.7 billion due to COVID-19 pandemic
Pilipinas Shell Petroleum Corp. announced shutting down its refinery in Tabangao, Batangas City due to the economic impact of COVID-19 pandemic.
After 58 years of operation, Shell said they are closing down the refinery and will shift to importation to sustain its business. They explained that the move is meant to optimize its asset portfolio since the price of fuel products imports are lower than or almost equal to the cost of refining their own crude oil.
Pilipinas Shell president and chief executive Cesar Romero said in a statement, “We have the technical capability and financial flexibility to manage and adapt to disruptive conditions.”
“Due to the impact of the COVID-19 pandemic on the global, regional and local economies, and the oil supply-demand imbalance in the region, it is no longer economically viable for us to run the refinery,” Romero said.
In the first half of the year, Pilipinas Shell recorded a net loss of P6.7 billion.
It can be recalled that around mid- May, Pilipinas Shell already announced the temporary shut down of the said Batangas refinery. This came after the demand for fuel products saw a drastic decline due to lockdown measures implemented to curb the spread of COVID-19.
Due to transport restrictions, the Department of Energy noted that the demand for petroleum products declined by 20% to 30% in March, and by as much as 60% to 70% in April.