MANILA, 7 May 2005 — By keeping its pump prices lower than the competition, Petron Corp., the Philippines' largest oil refiner, has earned praises from transport groups and President Gloria Macapagal Arroyo.

Arroyo yesterday urged the public to patronize Petron Corp. as a way of getting the other oil firms to also lower their pump prices.

“(Petron) is still the cheapest. I don’t have to advocate it, it’s (the law of) demand and supply. Go to the cheapest,” Arroyo told a news conference during the inauguration of the company's $100 million facilities in its refinery in Bataan province, west of Manila.

Petron raised pump prices by 0.50-peso per liter early this week but kept its prices lower compared to major competitors Pilipinas Shell and Caltex Philippines.

Petron is a joint venture between the Philippine government and Saudi Aramco of Saudi Arabia, with each side owning 40 percent of the company's shares. The remainder belong to smaller groups and individuals.

During the same briefing yesterday, Petron President Khalid Al-Faddagh said the company could hold off a price increase “probably (for) another week” although he assured the public that they would still offer the lowest price.

On Wednesday, transport groups urged the public to boycott other oil firms and buy solely from Petron.

Saudi Arabia, the world’s biggest oil producer, yesterday promised “to ensure that developing countries like the Philippines especially do not suffer from high oil prices.”

Al-Naimi visited the Philippines last March as part of efforts between the two countries to strengthen their trade ties.

Arroyo yesterday reminded the public, however, that the soaring oil prices had affected not just the Philippines but the whole world and the “best antidote” against its ill effects would be a growing economy.

“I wish I had a magic wand (against rising crude costs),” she added.

Arroyo has formed a task force to review the Oil Deregulation Law amid calls by various groups, including labor and transport, and some lawmakers to restore the government's regulatory powers over oil companies.

$350 Million for Upgrade

During yesterday’s visit of Arroyo at Petron's refinery in Bataan's town of Limay, Al-Faddagh announced thatthe company will invest $350 million over a five— to eight-year period to expand capacity.

The project includes a petroleum naphtha processing plant and an upgrade of existing refinery capacity, said Al-Faddagh.

Petron plans to install facilities that can deal will some of the residues left during current processing, he added. The facilities it inaugurated yesterday will allow it to refine fuel products that comply with the country’s clean air law.

Petron’s Limay refinery has an installed capacity of 180,000 barrels per day. (With input from INS & agencies)