MANILA, Philippines – A storage facility in Cebu City that was part of a cooking oil manufacturing plant will soon be used as a fuel depot that can help improve fuel supply in the Visayas in central Philippines.

Cebu-based LuDo & LuYm Corporation, a 137-year-old company behind cooking oil brands Capitol, Pigeon, Falcon, and Farola, will lease out parts of its storage facilities to Top Line Logistics, a subsidiary of listed fuel retailer Top Line Business Development Corporation (Top Line), for the latter’s fuel depot expansion project called Top Line Energy Complex. 

The rental agreement for LuD & LuYm’s storage facility in Cebu City will triple Top Line’s fuel storage capacity from its current 10 million liters to 30 million liters. 

“Top Line Energy Complex is envisioned as a strategic fuel logistics and storage hub that will support TOP’s (Top Line Business Development Corporation) continued expansion and contribute to efforts to strengthen energy security and fuel supply resilience in the Visayas,” Top Line said in a disclosure on Tuesday, May 19. 

It said the deal with the LuDo & LuYm Corporation marks the first phase of the Top Line Energy Complex, which will focus on “refurbishment and optimization” of the LuD & LuYm’s depot facility. It expects this phase to be completed by the fourth quarter of 2026. 

“We are entering our next phase of growth, and the Top Line Energy Complex is a cornerstone for our continued expansion. Through this agreement, we are strengthening our ability and capacity to expand to serve the growing energy needs of our customers while supporting broader efforts to improve regional energy security,” said Eugene Erik Lim, CEO of Top Line.

Douglas Luym, chairman of the LuDo & LuYm Group, said the partnership with Top Line “has strong potential to create long-term value and contribute to the development of a more reliable fuel supply chain in Cebu and the wider Visayas region.”

Top Line said that once completed, the Top Line Energy Complex will strengthen its logistics capabilities, operational efficiency, and supply chain reliability as the company grows its network of Light Fuels service stations and commercial customers. 

“This marks the first phase of a broader vision to establish a strategic fuel logistics and storage hub in the region,” said Top Line.

The Philippines currently has limited fuel storage capacities with no strategic fuel reserves. It relies on the storage capacities of private petroleum retailers that sell fuel in the Philippines, with Ramon Ang’s Petron Corporation as the only one with oil refining capabilities. The rest import finished oil products. 

A Petron Corporation officer has suggested putting up a tank farm in Mariveles, Bataan, in Central Luzon that can store 15 million barrels of crude oil, good for a 90-day or three-month stockpile.

Energy Secretary Sharon Garin said on Monday, May 18, that the Philippines’ average fuel inventory had fallen from around 50 days to 45 days as of May 15, broken down by fuel type as follows: 47 days for gasoline, 46 days for diesel, 60 days for jet fuel, 50 days for fuel oil, 30 days for LPG, and 152 days for kerosene.

Top Line debuted on the Philippine Stock Exchange in April 2025, making it only the sixth Cebuano firm to go public. – Rappler.com