Oil Smuggling

While we all know that such a situation exists in our crude import dependent country, this article confirms and emphasize smuggling in the philippines and its impact fiscally. However, with no official data to back up analysis, we can only work on estimates.

Oil smuggling has been a problem not just for legitimate oil players but for motorists as well. We maybe putting off-specs product in our cars just to save some penny. And now, the article emphasizes the forgone revenue we the government could have enjoyed, giving us enough resources to combat the current crisis and stand on our own. This maybe an interim solution for BSP’s call to be less dependent on our export sector.

I just hope that we all accept the truth and take action to fight smuggling in our country.

Petron to issue Php 15B fixed-rate notes

Petron Corporation, the country’s top oil refiner, aims to raise upto P15 billion or $310 million via a private placement of fixed-rate notes starting May, according to Eric Recto, the company’s president. Recto said that proceeds of the notes issue will be used to fund the company’s five-year expansion plan worth $700 million to $1 billion. No word yet on the mechanics of the notes issue, or wheather it will be open to small investors.

The company is now fully private, after the government’s stake was sold to Ashmore. Late last year, San Miguel Corporation entered to an agreement with Ashmore, with some SMC executives now occupying key positions in the management of Petron.