The Maharlika Investment Corp. (MIC) has signed an agreement with Petron Corp. for a short-term revolving credit facility of up to P15 billion aimed at strengthening the country’s fuel security and enhancing economic resilience.
In a statement on Thursday, MIC said the facility, offered at prevailing interest rates, complements Petron’s existing funding arrangements and provides additional flexibility in managing fuel procurement and expanding its crude oil inventory.
Under the agreement, MIC will provide financing that Petron may use solely for the purchase and/or importation of crude oil, refined petroleum products and related working capital requirements.
Petron is currently the Philippines’ only oil refiner and one of the country’s major fuel suppliers.
MIC said Petron plays a critical role in ensuring the stable supply of petroleum products to households, motorists, businesses, industries and other key sectors of the economy.
“The price of oil has risen to the point where distribution companies must double their working capital just to buy the same amount of fuel,” MIC president and chief executive officer Rafael Consing Jr. said.
“This facility allows MIC to support fuel supply stability while deploying capital in a sector that is essential to the economy,” he added.
