Metro Manila, Philippines – Ramon Ang said San Miguel Corporation (SMC) is prepared to sacrifice profits – and even consider selling its subsidiary Petron Corporation – if it will help make sure that fuel supply is stable during a global crisis.
“And I promise the public, we will not take advantage of this fuel crisis. Hindi kami kikita ng mahigit pa sa normal. And I’m willing to even lower the income,” said Ang, chairman and CEO of SMC.
[Translation: We will not earn more than normal. I’m willing to even lower our income.]
Ang said Petron is prioritizing supply security over earnings, even if it means absorbing higher costs.
“Sa sakripisyo na namin, bibili na namin yung mas mahal na crude… para lang siguradong hindi tayo ma-run out of crude oil,” he said.
[Translation: Even in our sacrifice, we will buy more expensive crude just to make sure we don’t run out.]
He also signaled openness to more drastic measures, including government intervention in Petron.
“In fact, sabi ko nga eh, kung gusto ng gobyerno, pwede nga ng gobyerno bilhin ang Petron sa akin… kung tingin nila mas magaling sila magpatakbo,” Ang said.
[Translation: If the government wants, it can even buy Petron from me if it believes it can run it better.]
He said the company is shifting focus toward importing crude oil instead of finished petroleum products, which have become significantly more expensive due to global supply disruptions.
“Kapag nag-import ka ng diesel or gasolina… may premium na 40 percent to 50 percent kapag may shortage. Pero kung crude oil, nasa 10 percent to 20 percent lang,” he said.
[Translation: Importing diesel or gasoline can have a 40 percent to 50 percent premium during shortages, while crude oil only carries around 10 percent to 20 percent.]
He said conflicts such as the Russia-Ukraine war to tensions in the Middle East have damaged refinery operations, tightening global supply of finished fuel.
“Pinaka mahirap mag-import ng finished product… halos bumaba na ang supply galing sa refinery,” Ang said.
[Translation: It is hardest to import finished products… supply from refineries has significantly declined.]
Ang said Petron can still supply a significant portion of national demand.
“Even with one refinery, we can supply at least 30 to 35 percent of consumption,” he said.
He also reassured the public that the company is working to maintain steady fuel in the coming months.
“Hindi tayo mauubusan ng supply… huwag kayong mag-panic,” he said.
[Translation: We will not run out of supply… do not panic.]
