Govt may allow more fuel imports due to Shell row

Government may allow other oil firms to import more fuel as a last resort, if talks for a possible compromise with Pilipinas Shell Petroleum Corp. over a P7.3-billion tax row fail. Deputy presidential spokesman Ricardo Saludo on Saturday said that they are still exploring win-win solutions, including placing the contested amount in an escrow account. “There are many other oil firms. If needed, we can allow them to import more fuel. We have independent players aside from big firms Caltex and Petron. They can ramp up their production," Saludo said on government-run dzRB radio. But in the meantime, he said the Department of Finance has offered a possible compromise solution where the P7.3 billion in back taxes Shell owes the government can be put in an escrow account. Under the proposed deal, government can then allow Shell to continue importing fuel, to ensure a stable supply. “Ang pera na sinisingil sa Shell mailagay sa escrow account para mapagpatuloy ang importation. Ang importante dito (magkaroon ng) kasunduan (para) di mag-withdraw ang supply ng gasoline (The amount can be placed in an escrow account while government allows Shell to import. The bottom line is to make sure we have enough supply of fuel)," Saludo said. He also urged the public not to speculate on possible consequences if Shell rejects the compromise offer. “We hope for the best," he said. Earlier, Shell had suspended all its importations after the Court of Tax Appeals (CTA) rejected the oil giant’s petition for an extension of the temporary restraining order on the seizure of its imports by the Bureau of Customs. Roberto Kanapi, Shell spokesman, said they decided to temporarily stop their importation beginning Feb. 9 because “the BOC threat of seizure still remains." The BOC wanted to seize shipments of Shell to cover the oil firm’s reported P7.3 billion in back taxes for catalytic crack gasoline (CCG) imports. Shell contested the BOC action, saying CCG is not a finished product but a raw material for unleaded gasoline production. — LBG, GMANews.TV