DOE grants gasoline station loan in LGUs without gasoline station

By Philippine Information Agency (PIA 8)
November 13, 2012

PALO, Leyte  –  The Department of Energy has introduced the granting of gasoline station loan in order to promote retail competition in the Downstream Oil Industry as well as to encourage and support new industry participants who are interested to put up gas station business especially in areas or local government units without gasoline stations.

Director Zenaida Monsada, chief of DOE’s Downstream Oil Industry Management Division, gave this information during the multi-sectoral advocacy on downstream oil industry forum, held recently at the Leyte Oriental Hotel.

One of the pillars of deregulation is to encourage the entry of new industry participants, Director Monsada said.

To this effect, the Gasoline Station Lending and Financial Assistance Program was introduced, Director Monsada said.

In order to be able to avail of the credit assistance, the borrowers must first successfully complete the two-fold program on management and skills training in the retailing of Petroleum Products for the establishment, operation, improvement, management and maintenance of gasoline stations within the current deregulated environment.

The financial assistance covers the retailing of all Petroleum Products sold in gasoline stations, including LPG.

Director Monsada said that the total amount earmarked for the Program is Ninety-Four Percent (94%) of the Three Hundred Million Pesos, equivalent to Two Hundred Eighty-Two Million Pesos (P282M).

This Program Fund shall be made available by the Philippine Amusement and Gaming Corporation (PAGCOR) through the DOE and administered by the Development Bank of the Philippines (DBP).

Director Monsada said that the local government units may also apply as the usual problem of the applicants is the land property.

All eligible projects (Projects) can avail of the one hundred percent (100%) loanable amount provided that such amount shall not exceed fifty percent (50%) of the total Project cost or Five Million Pesos (P5,000,000.00), whichever is lower.