PASCAL Resources Energy Inc. (PREI) is targeting to generate P220 million in revenues, mainly from the sale of its Gaz Lite aluminum liquefied petroleum gas (LPG) canisters.
In a press briefing on Monday, PREI officials said they hope to encourage more Filipino consumers to switch to clean energy for cooking. Within the next five years, PREI is aiming to tap half of the 12 million households who currently do not use clean fuel for cooking. The company said it has reached an estimated 150,000 customers since 2015.
Described as the world’s first refillable aluminum LPG canister, Gaz Lite was developed as an alternative to solid fuel — or wood and charcoal-based — cooking, as well as to the dangerous refilling of butane canisters with LPG.
PREI Chairman Nelson C. Par said that the company targets P220 million in revenues by 2020. The company had invested an initial P20 million for research and development, and P500 million in its first facility in Lubao, Pampanga that will be fully operational by January 2020.
“For this year, we’re looking at probably P100 million [in revenues]. After our exit from the traditional business, we’ve now invested P500 million for the facility. We’re serious about it,” Mr. Par said.
“Hopefully we would be able to pull together all those interested to be distributors. We’re looking at going nationwide for this.”
PREI intends to expand to further facilities in Gaz Lite’s main markets in Visayas and Mindanao.
PREI Assistant Vice President for Branding and Marketing Matthew Par said that the company intends to improve affordability for LPG.
Solid fuel users spend an estimated P30 per day, while a Gaz Lite canister refill that lasts three to five days costs P65 at suggested retail price.
Initial costs for Gaz Lite would be P145 for a new canister, or around P1,000 for the stove and two-canister set. Gaz Lite canisters only work with the stoves and grills produced by the company.
Smaller and one-time use LPG-refilled butane canisters, the PREI assistant vice president said, typically cost between P10 and P35 each.
The Department of Energy reported that household LPG in Metro Manila was at P578.30 to P740.30 per 11-kilogram cylinder as of Nov. 6.
Gaz Lite was initially the corporate social responsibility activity of the Par family-owned LPG and refilling company PR Gaz, which they sold in 2017. The family founded PREI in 2018.
Gaz Lite is the only refillable LPG canister that carries the Philippine Standards (PS) Mark as well as the Intellectual Property Office of the Philippines’ Utility Model registration. — Jenina P. Ibañez