"This is a result of a thorough evaluation of the refinery's economics due to the significant decline in demand for oil products and the significant deterioration of regional refining margins brought about by the Covid-19 pandemic." PSPC said.
But it will retain the flexibility to start up immediately should demand and market conditions improve or stabilise. PSPC also assured that it will continue to provide adequate supplies for its customers and the public.
Shell runs mainly Mideast Gulf grades at its refinery, including light sour crude from Abu Dhabi. It has also occasionally taken Russian ESPO Blend.
President Rodrigo Duterte has ordered the extension of the enhanced community quarantine in Metro Manila, central Luzon, Calabarzon and other "high-risk" areas in Luzon until 15 May, in a move that will further depress the country's fuel demand. Philippine private-sector firm Petron has already reduced runs at its 180,000 b/d Bataan refinery amid a combination of weak product margins and poor domestic demand, said market participants.
