Duterte crony Dennis Uy’s business empire faces a significant setback as Phoenix Petroleum (PNX), an erstwhile key player in the oil industry, reportedly ceased its importation of diesel and gasoline over the last ten months.

Digital news outlet Bilyonaryo reported that PNX informed the Department of Energy in early March about its decision to halt fuel imports until the end of 2023.

The company remains undecided on whether it will resume importing diesel and gasoline this year, according to Bilyonaryo’s sources.

To maintain its accreditation, PNX must submit an application with the DOE. However, it retains the importation of liquefied petroleum gas and asphalt.

The outlet’s sources divulged that PNX’s decision is a tactical maneuver to confront its severe financial challenges, as its total net losses surged from P1.544 billion in 2022 to an alarming P5.227 billion during the initial nine months of 2023.

In conjunction with halting fuel importation, PNX’s board sought tax exemptions from the Quezon City government for separation benefits granted to employees, citing the necessity to prevent business losses through retrenchment.

Phoenix Petroleum’s financial woes intensified with a 49 percent drop in fuel volume during the first nine months of 2023, as it shifted to sourcing fuel from third-party suppliers.

The company, once the third-largest player in the oil industry with a 9 percent market share in 2021, has experienced a downward spiral, reporting losses of P3.72 billion during the first nine months of the current year.

Despite the local economy returning to normal and a decline in oil prices, PNX attributed its losses to “the lingering effects of the pandemic and geopolitical tensions.” Non-operating charges increased by 32 percent, contributing to a 57 percent year-on-year drop in revenues to P42.8 billion.

In an effort to alleviate financial strain, PNX entered into a sale-leaseback agreement with creditor BDO Unibank to raise P9 billion, involving the sale of terminals, depots, and retail stations, PhilStar reported.

Moreover, in October of the previous year, there were indications that Phoenix Petroleum Philippines Inc. intended to generate $19.2 million through the divestment of its Singapore-based subsidiary.