State-owned oil giant Saudi Aramco (TADAWUL: 2222) has officially entered the Philippine fuel retail market with the opening of its first branded station in Sucat, Metro Manila. The move marks the company's return to the country's downstream sector after divesting its 40% stake in Petron Corporation (PSE: PCOR) in 2008.
The new station offers Aramco's premium ProForce gasoline, which debuted at PHP 80.50 per liter, representing a PHP 5.20 or 6.9% premium over the station's regular gasoline price of PHP 75.30 per liter. Diesel was priced at PHP 81.60 per liter, a PHP 4.20 or 5.4% premium over regular diesel.
To attract initial customers, Aramco is offering membership discounts through its partnership with S&R, which reduces the gasoline premium to PHP 3.20 per liter, effectively a 4.4% premium. Additionally, East West Banking Corp (PSE: EW) is providing a PHP 200 rebate for fuel purchases of at least PHP 2,000 until September 15, 2026, effectively lowering the trial cost for consumers.
The Sucat station is part of a broader strategy following Aramco's 2025 acquisition of a 25% stake in Unioil, which operated 165 stations and four storage terminals at the time. The financial terms of that deal were not disclosed. Currently, the single branded outlet represents just 0.6% of Unioil's projected 2025 network.
Ziyad Juraifani, Aramco's retail vice president, described the Sucat opening as "only the beginning of our journey in the Philippines." The company plans to open additional sites in high-traffic urban areas, including North EDSA, Quezon Avenue, and the North Luzon Expressway. These three specified projects would increase Aramco's branded share to 2.4% of the network.
Investor focus will be on whether Aramco can sustain premium-fuel demand once promotional discounts end. The company has not disclosed station-level economics, rollout capital, or redemption rates for its launch promotions. For now, the Sucat station is primarily a customer-acquisition trial rather than a significant earnings contributor.
The launch comes amid broader market movements. The Philippine Stock Exchange Index (PSEi) closed Friday at 6,404.11, up 1.25% for the day and 1.9% for the week. Aramco shares gained 0.6% on Sunday, while oil prices surged over 4% on Friday due to rising regional supply concerns.
Key risks for Aramco's Philippine expansion include fluctuating crude oil prices, intense competition from established players, and a potential slowdown in site conversions. Demand driven by promotional rebates could weaken once those incentives expire.
