Petron to face Eastern Petroleum complaint over P50-M Subic station

Oil giant Petron Corp. will face a complaint by Eastern Petroleum Corp. on Thursday over the P50-million Subic megastation, Eastern Petroleum chairperson Fernando Martinez said Wednesday. Martinez said Eastern Petroleum will file a restraint of trade complaint against Petron before the Energy Department for allegedly violating the Oil Deregulation Law of 1998 when it blocked the opening of Eastern Petroleum’s Subic megastation. Martinez noted that Petron filed a temporary restraining order and preliminary injunction against it and the Subic Bay Metropolitan Authority (SBMA) around two weeks ago. The oil giant filed the case with Branch 72 of the Olongapo Regional Trial Court but the court has denied the TRO, according to Martinez. Hearings on the injunction are ongoing. Petron has stood firm in upholding a contract between it and the SBMA prohibiting the construction of a similar business within an 800-meter radius inside the free port area. On the other hand, the SBMA in April said it is opening its doors to Eastern Petroleum as the latter was poised to complete its Subic megastation – likely the biggest retail station in the Subic Bay Freeport Zone, according to Martinez. “They don’t want to lose the market," said Martinez, explaining the supposed reasons for Petron to block the Eastern Petroleum facility. “Our location is strategic and our size is twice as large." “This is a clear restraint of trade. There is… intent to inflict further damage to us. I am seeking the state's intervention to implement the rule of the law," Martinez added. Petron: Contract remains valid In a statement, Petron senior vice president and chief finance officer Emmanuel Eraña said the company welcomes the action to be taken by Eastern Petroleum “so we can settle this issue once and for all." “The contract in question remains valid and should be enforced as agreed upon by both parties. One simply cannot change the rules of the game in mid-stream to suit one’s interests," Eraña said. The Petron official explained that the SBMA Board approved the 800-meter radius provision as an incentive for taking a “gamble" in Subic in 2003, when the area was still “underdeveloped." “Subic Bay has a huge area beyond the 800-meter radius of our station, which our other competitors have availed [themselves] of. There is nothing that prevents Eastern or any other party from putting up service stations within SBMA beyond that 800-meter radius," Eraña added. — With Paterno Esmaquel II/VS, GMA News