By Cris Larano
MANILA--The Philippine Supreme Court on Tuesday overturned a
2009 city ordinance that allowed a sprawling oil depot run by three
of the country's largest oil firms to continue operating the
facility in a densely populated district in Manila and near the
Malacanan presidential palace.
The 2009 ordinance reclassified the district of Pandacan for
heavy industry use, overturning an ordinance passed by the City of
Manila shortly after the terror attack in the U.S. in September
2001. The City of Manila had classified the area for commercial use
to force the oil depot out, on fears it could be a target for
terrorists.
A group of lawyers questioned the legality of the 2009
ordinance, saying it doesn't protect public welfare given that the
depot is a "potential magnet for terror attack" that could claim
hundreds of lives.
The Supreme Court gave the three oil companies--Petron Corp.
(PCOR.PH), Pilipinas Shell and the local unit of Chevron Corp.--45
days to submit their relocation plan to a tribunal.
The three oil companies have earlier said they are ready to move
out of Pandacan depot, which supplies the requirements of
metropolitan Manila and nearby provinces. Some have raised concern
that the relocation could mean increases in the price of fuel.
Petron, in particular, has said the transfer wouldn't affect
fuel prices even though the relocation would cost around 15 billion
pesos ($333 million) to complete.
Write to Cris Larano at cris.larano@wsj.com
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