WITH the government asking oil companies to peg their fuel prices at a level relatively lower than current costs, even major oil refiner Petron Corp. had to “tighten” its belt and cut its order of diesel supply, in what is seen as the first confirmation of warnings of a local supply problem.
A Platts Global Alert report furnished by an industry source to reporters noted that “belt-tightening measures among local oil companies had already been seen as early as Wednesday last week.”
The report added that Petron only bought one of the two cargoes it originally sought via a tender it released on October 23, the same day the government issued Executive Order 839 telling oil firms to freeze prices at October 15 levels, until further notice, in light of the calamity situation in Luzon caused by back-to-back storms Ondoy and Pepeng.
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