Eastern Petroleum Corporation has signed a one-year oil supply agreement worth P1.35 billion with Taiwanese oil refiner Formosa Plastics.
Company chairman Fernando L. Martinez said the deal would involve the supply of 36 million liters of diesel products to satiate Eastern Petroleum's demand this year.
He emphasized that Formosa Plastics, is one of Asia's largest oil refiners. For the Philippine market, the company reportedly refines up to 600,000 barrels per day and channels distribution through its local importer and representative Oilink Incorporated.
"Through this supply agreement, Eastern Petroleum's supply of high quality oil products is assured," Martinez said.
With the anticipated exhaustion of inventories around January 15, Martinez indicated that adjustments in prices will be a biting reality that consumers would have to contend with anew.
Malacanang announced a 1.0 percent cut in the 3.0 percent import tariff for oil products, but it was noted that this will not be enough to contain the P4. …