Press Release

Pilipinas Shell Petroleum Corporation announced today that effective 01 January 2005, the import duty for petroleum products increased from 3% to 5%, translating to about 35-40 centavos per liter in added cost to Shell. However, despite this increase in its product cost, Shell will implement a one peso per liter price rollback for gasoline effective 12 noon January 6, 2005, in line with the easing up of oil prices in the world market.

Shell will also continue to maintain the one peso per liter price discount for diesel purchases made by public utility vehicles (PUJ/PUBs) in 50 Shell service stations nationwide.

Lastly, in light of the recent calamities in and outside the Philippines, Shell will donate to disaster relief efforts one centavo for every liter of fuel sold for the month of January 2005 in more than 900 Shell service stations throughout the country. The proceeds raised through this effort are expected to exceed 2.5 million pesos and will be channeled to various local and international aid agencies (e.g. Corporate Network for Disaster Response), in coordination with the Department of Energy.

"We hope that our efforts will benefit those whose lives have been impacted and will continue to face a difficult future as a result of the calamities," said Edgar O. Chua, President and Chairman of Pilipinas Shell Petroleum Corporation.