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A new city ordinance was approved by the Manila City council which allows the “Big 3” oil companies operating in the Pandacan oil depot to stay in the place, despite a recent Supreme Court ruling ordering with finality their facility’s relocation. The new ordinance creates zones for medium and heavy industries in the city, this was approved on the third and final reading by majority of Manila councilors with a vote of 20-14.

City Ordinance 7177 effectively amends Ordinance 8119 or the Manila Comprehensive Land Use Plan and Zoning Ordinance of 2006, which adopted the provision of Ordinance 8027. Said ordinance (8027), states that parts of Pandacan and Sta. Ana were reclassified from industrial to commercial zones, which necessitates the transfer of the Big 3’s operations elsewhere.

Energy Secretary Angelo T. Reyes welcomes the approval of the new ordinance and called it a positive development. With the Big 3 (Pilipinas Shell, Chevron and Petron) no longer required to relocate, it somehow secures the oil supply in the country.

Reyes said,  “My only concern is that we are assured of a secure supply of petroleum products, particularly in Metro Manila. We don’t want any disruption of that and we don’t want any undesirable price behavior as a result of any moves in location — that’s my only concern.”

More than half of the country’s total fuel demand and 100 percent of lubricant requirements depend upon the Pandacan oil depot. This includes not only those in the transport, but also those of the industrial sector too.

Although approved by the city council, a final and approved version of the ordinance still needs to be sent to the Office of the Mayor for review and action.