SEAOIL launches 'extreme' gasoline
by Kristine Servando, abs-cbnNEWS.com/Newsbreak | 06/25/2009 9:09 PM
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MANILA - SEAOIL Philippines Inc. officials announced on Thursday that they will be offering a new blend of gasoline that can make cars run faster, is environmentally-friendly, but is priced cheaper than other premium brands.
"Extreme 97", which will be available in all SEAOIL gas stations in Metro Manila, reportedly gives cars an extra 3-horsepower kick, reduces carbon dioxide emissions because it uses ethanol, and cleans out the engine by burning away deposits like carbon, dirt, gums, and varnishes.
The high-octane product will boost engine performance and speed, while prolonging engine life. Equipped with "friction modifier technology," the fuel increases engine lubrication and prevents wear and tear. Since it does not use harmful additives, it is compliant with the Clean Air Act and the Biofuels Act.
The gasoline-ethanol mix will be priced at P39.05 per liter. This is about P6 less than Petron Blaze, which has a 96 octane rating, and was previously the highest-octane gas in the country. Currently, the highest octane pump gas in Asia is in Singapore, which has a fuel with 98 octane rating.
SEAOIL will be offering the 97-octane gas exclusively, meaning they will no longer offer 95-octane gasoline. The product is compatible with any 1997 car model, as well as 1990 car models with genuine spare parts.
The whole project cost P10 million, an investment that SEAOIL President Glenn Yu said would help boost their market share, currently tagged at 4%.
"We have a product that I think more consumers will be happy about because they are not sacrificing one attribute over the other- between performance, pricing, and environmental friendliness. Extreme 97 has all these," he said.
Bernie Raymundo, SEAOIL's Vice President for Supply, said the product was priced cheaper than other brands because of the technology used in developing "Extreme 97." The actual formula is kept secret, but Raymundo said that it is mixed with "liquid organic additives that are produced so much, that they do not contribute to gas emissions."
The Department of Energy (DoE) is yet to test the "revolutionary" product, but SEAOIL executives assure that the company has tested it using laboratory equipment similar to the DoE's as well as on the high-speed race track.
Yu also stressed that SEAOIL is certified under the International Organization for Standardization, ensuring that their products are up to standard.
High-octane myth
Several car experts like Alan Swanson and James Deakin, however, have pointed out that using high-octane fuel for regular cars may not necessarily mean better performance.
| WHAT DOES A HIGH-OCTANE RATING MEAN? |
|
A higher octane rating means the fuel needs higher levels of compression or engine temperatures to ignite.
Formula 1 race cars, which have different engines than ordinary cars, use fuel that have 110 octane rating.
Since high-octane fuel needs more extreme pressure or heat to ignite, it has higher resistance to pre-ignition or knocking.
Source: Alan Swanson. |
In his "Philippine Star" column titled "Backseat Driver", Deakin said that there is no advantage in putting a higher octane fuel in a car rated for regular fuel. "[It is] simply a waste of money. There is absolutely no advantage, except for the fuel retailer," he stated.
Deakin explained that certain brands of fuel do not necessarily give fuel economy or better car mileage because there are more factors in play than just fuel. He said factors determining fuel economy are the driver's skill, road conditions, weather conditions, and traffic conditions; while a fuel brand's role is negligible.
"Don't believe for a second that a brand of fuel can get more power out of your car than what it was designed for. If your car is rated at a hundred hp and gets 10 [kilometers] to a liter, then that's the most you can ever expect to get out of it," Deakin said.
Ira Panganiban, a motoring expert and writer, echoed this idea. "In general, follow the manufacturer's guidance. There are many factors affecting a car's performance like displacement, air fuel mixture, wheels, your transmission. It's a whole system and not one factor. Like, fuel won't make everything greater. It's basically a myth," he said.
However, Dennis Uy, SEAOIL's lead racer for the Philippine Touring Car Championship (PTCC), said he has been using the "Extreme 97" product for a year and a half, both for his racing car and his regular car.
Uy said there were marked improvements in his cars' performance in terms of horsepower and an extra torque of 1.2 foot-pounds, both crucial in racing competitions. He said that using the product was a big factor in helping him win the PTCC's Class A Championship last year.
"Racers used to buy 105 octane fuel, priced at P70, so it was only the racers who could afford it who would always be up there on the [winner's] podium. Others would cheat with additives to boost octane. So the spike cannot be attributed to engine modification, it's more of the performance of fuel," he said.
Rapid expansion
"Extreme 97" is the company's follow-up to other products like unleaded gas, E10, and E85. It was reportedly the first company to introduce ethanol blends to the Philippine market, even before the government imposed requirements for all oil products to incorporate 5 to 10 percent ethanol.
Since their introduction of various oil products like E85, Yu said SEAOIL has registered a 13 to 15 percent growth since last year. "Growth is consistent with the roll-out of new products and stations. I think consumers are able to distinguish between the quality of the product," he said.
In lieu of gradually introducing and promoting the "Extreme 97" product throughout the country within the next few months, SEAOIL is eyeing rapid expansion by investing in franchising. The company will be a co-presenter at the annual Philippine International Franchise Conference and Expo in July.
SEAOIL also wants to have 500 gas stations around the country by 2011. Yu said that the company was "a little ahead of target" in terms of reaching that goal.
Anthony Mars Alcruz, SEAOIL Vice President of the Franchise Support Group, said that the company is also focusing on developing more depots to support the expansion. This is also to assure a constant supply of gas should consumer demand increase.
Meanwhile, SEAOIL officials refused to comment on oil price projections in the coming months, saying the market was simply "volatile." Yu also refused to comment on whether the company will list on the Philippine Stock Exchange.
SEAOIL, which sources its oil and natural gas products regionally, is the largest independent oil company in the Philippines. It has over 160 stations nationwide, with oil depots in Bacolod, Cagayan, Dipolog, Cebu, Mandaluyong, and Batangas.
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