MANILA, Philippines — Rafael Consing Jr., President and CEO of the Maharlika Investment Corp. (MIC), clarified on Saturday that while the sovereign wealth fund is exploring all avenues to strengthen the nation’s energy security, a government takeover of Petron Corp. is currently not seen as a necessary move.
Amid escalating energy costs and supply concerns triggered by global conflicts, billionaire Ramon Ang recently revived a proposal for the government to buy back the oil giant. However, Consing emphasized that Petron remains an “exceptionally well-run organization” that fundamentally belongs in the private sector.
Consing, who oversees the P125-billion fund, argued that using sovereign capital simply to acquire existing shares to satisfy short-term market whims would be inefficient.
Instead of a full takeover, Maharlika is prioritizing midstream infrastructure. This includes investing in national fuel storage networks to create a “permanent buffer” against the volatility of the global oil market.
Petron Corp., a subsidiary of San Miguel Corp., remains the only oil refiner in the Philippines. Its Bataan refinery has a capacity of 180,000 barrels per day and supplies approximately one-third of the country’s total fuel requirements. Given its scale, the question of its ownership often surfaces during times of global oil instability.
Economic and investment experts largely support Consing’s cautious stance.
- Juan Paolo Colet (China Bank Capital Corp.): Suggested that concerns over fuel pricing can be managed through regulation and “moral suasion” rather than costly state ownership.
- Ser Percival Peña-Reyes (Ateneo Center for Economic Research and Development): Warned that a takeover might not “magically stabilize” prices and could even strain the national budget while discouraging other private investors in the energy sector.
The decision to hold off on a Petron buyout comes as Maharlika continues to diversify its investments. Recent moves include:
- A P19.7-billion investment for a 20% stake in the National Grid Corporation of the Philippines (NGCP).
- An P8-billion share settlement in Asian Terminals Inc. (ATI), marking MIC’s entry into the port sector.
- A $76.4-million bridge loan to Makilala Mining Co. Inc.
As the country navigates a complex economic landscape, Maharlika appears focused on securing the backbone of the economy—power grids, ports, and storage—rather than direct competition in the retail fuel market.