Philippine private-sector firm Petron has raised the prospect of shutting its 180,000 b/d Bataan refinery as it negotiates with the government for better conditions, in a move that would leave the country entirely dependent on oil product imports.
Petron is prepared to close down the refinery if talks with the government on creating a "level playing field" for the industry do not succeed, chief executive Ramon Ang said.
Ang did not give details of the talks, but a move by the government to increase import taxes on crude earlier this year has raised costs for refiners.
Bataan is the only remaining refinery in the Philippines, after Shell permanently shut its 110,000 b/d Batangas refinery in August because of regional oversupply and the impact of the Covid-19 pandemic.
The Philippines' product imports have already been rising, hitting almost 310,000 b/d of diesel, gasoline, jet-kerosine, fuel oil and LPG in 2019, up by 15pc from a year earlier, according to government data.
