Dear Valued Customers,
MEC wishes to provide clarification regarding our storage fee policy for prepaid gasoline drums. We understand this policy has raised questions, particularly among our outer island customers, and we appreciate the opportunity to explain its purpose and implementation.
Purpose of the Storage Fee
The $5 per day storage fee is not designed to generate additional revenue for MEC. Rather, it serves as an operational necessity to encourage timely pickup of prepaid gasoline drums. Our tank farm area faces significant space constraints, which our ongoing tanks rehabilitation project has further limited.
Operational Challenges
MEC has encountered a recurring situation where customers who prepay for gasoline drums in bulk leave them in our storage facilities for extended periods—sometimes weeks or even months. When new inventory shipments arrive, we are forced to store these at the Stevedore container yard at additional cost to MEC because our designated storage areas are already occupied by prepaid drums awaiting pickup
This situation creates substantial operational challenges that affect our ability to:
- Serve all customers efficiently
- Maintain adequate inventory levels
- Provide consistent and reliable fuel supply
- Control operational costs
- Sustain an effective supply chain
Most critically, the extended storage of drums directly impacts our supply chain. MEC cannot purchase or import additional gasoline in drums if our storage areas remain occupied for extended periods. This disruption in our supply chain would ultimately result in an unreliable service that our customers cannot depend on—an outcome MEC is committed to avoiding.
Understanding Transportation Challenges
We recognize the unique transportation challenges facing our outer island customers, including inconsistent shipping schedules and frequent departure delays. MEC has no control over these shipping timetables, which is why we strongly recommend that customers purchase gasoline drums only when they have confirmed transportation arrangements.
Our Commitment to Transparency
To ensure complete transparency, we inform all customers about our storage policy and provide documentation of potential fees for drums not collected promptly—all before any purchase is made. MEC only collects payment after the customer has read, understood and accepted these conditions.
Recommendations for Customers
To avoid storage fees, we recommend:
- Arranging transportation before purchasing fuel drums
- Coordinating pickup within three (3) days of purchase
- Contacting our office in advance if you anticipate delays
- Considering smaller, more frequent purchases if transportation is uncertain
Working Together
We value all our customers, particularly those in outer island communities, and remain committed to providing affordable and accessible fuel. We will continue exploring solutions that balance our operational constraints with the special needs of these communities.
For any questions or to discuss special arrangements, please contact our Petroleum Department at (692) 625-8410 / Ext: 142 or email at petroleum@mecrmi.com or paul.domingo@mecrmi.net.
Thank you for your understanding and cooperation.
Sincerely,
/s/ MEC CEO
