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More tankers get truck ban exemptions

MMDA move aimed at preventing fuel shortage

By Tina Santos
Philippine Daily Inquirer
First Posted 22:39:00 12/17/2010

Filed Under: Road Transport, Oil & Gas - Downstream activities, Consumer Goods

MANILA, Philippines?The Metropolitan Manila Development Authority (MMDA) has granted additional truck ban exemptions to fuel tankers and lorries of other oil industry firms to prevent a fuel shortage that could result from the continued closure of the First Philippine Industrial Corp. (FPIC) pipeline.

This is on top of the truck-ban exemptions previously granted to Shell and Chevron.

MMDA Chairman Francis Tolentino approved the issuance of exemptions to 100 units belonging to Petron, Total, Sea Oil, Jetti and Fil Pride after meeting with officials of the Department of Energy (DOE).

?We will maintain the status quo on the exemptions of the 146 tankers of Shell and Chevron, which were directly affected by the closure. The additional exemptions for the other oil companies will help increase the fuel supply in Metro Manila,? he said.

Fuel demand

DOE figures showed that a fuel demand of around 1.8 million liters could not be met by Shell and Chevron with the closure of the pipeline.

A portion of the pipeline, which runs through Osmeña Highway in Makati City, was found to be the source of the oil leak in the basement of the 22-story West Tower condominium in Barangay (village) Bangkal since July.

Tolentino said the granting of additional exemptions was based on the volume of fuel demand not met by the two oil firms divided by the average lorry capacity.

Out of the 100 additional exemptions, 76 were issued to Petron, 14 for Total, six for Sea Oil, and two each for Jetti and Fil Pride.

The allocation of the tankers to be exempted among the other oil companies was based on the percentage of their market share based on DOE statistics.

The exempted units will be issued individual certificates of exemption. Mondays and Fridays are not included in the coverage.

The MMDA added that the exemption is not applicable along Roxas Boulevard, Taft Avenue and Epifanio de los Santos Avenue and will be valid until Jan. 3, 2011.

Earlier, the DOE asked the MMDA to exempt fuel tankers from the truck ban to prevent the possibility of an oil shortage in the metropolis following the closure of the 117-kilometer FPIC pipeline.

The pipeline transports 60 percent of Metro Manila?s fuel needs.



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