How the Lim Siblings of Cebu are Working to Get a Bigger Slice of the Retail Fuel Pie
When the local oil industry was deregulated in 1998, it paved the way for smaller independent players to compete against the so-called Big Three oil companies—Petron, Shell, and Caltex. New players entered the market and pumped more than P30 billion in new investments by 2009 after the oil deregulation law was passed.
The first Light Fuels retail station opened Along AC Cortes in Mandaue, Cebu in February 2023
By 2010, there were at least 80 new players in the local downstream oil industry, although this number has since gone down to about 50 in 2021. For years, the Big Three accounted for just over half of the entire market share for petroleum products in the country, with all the rest of the players fighting for the other half. However, things have begun to change in recent years. According to data from the Department of Energy, By the first half of 2022, independent oil players increased their market share to 59.23 percent versus 41.97 for the Big Three.
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The major oil players have since slightly regained market share to 43.13 percent as of the first half of 2023 versus 56.87 for the smaller companies. Still, that hasn’t stopped newer entrants attempting to steal a slice of the fuel pie.
One of these newer players is the Lim family of Cebu, whose Top Line Business Development Corp. has recently ventured into the fuel retail business through the Light Fuels brand. The family was originally involved in leasing and real estate, and eventually expanded into fuel trading and depot operations servicing mainly Cebu and the Central Visayas region.
The Lim siblings behind Topline: (from left) Brigitte Carmel Lim, Senior Vice President, Chief Operating Officer, and Corporate Secretary; Eugene Erik C. Lim, Chairman, President, and CEO; and Atty. Constance Marie C. Lim, First Vice President and Chief Financial Officer
Today Topline is led by siblings Eugene Erik Lim, chairman, president and CEO; older sister Brigitte Carmel Lim, SVP, COO, and Corporate Secretary; and youngest sister Atty. Constance Marie C. Lim, first vice president and CFO. They have two other siblings who are not diectly involved in the company's operations
During a press briefing in Cebu, the three siblings said going into fuel retail seemed like the natural progression from their core business. Diesel delivery to clients in and around Cebu City and the entirety of Cebu Province grew from 2.8 million liters in 2017 to 56.18 million liters in 2023. That translates to a compound annual growth rate of about 53 percent annually during that period.
In February 2023, the company opened its first retail fuel station along the busy AC Cortes Avenue in Mandaue City. About a year on, Light Fuels is now contributing about three percent to the company’s revenues, according to Atty. Constance Lim.
“It’s only been a year, but we’re hopeful we can increase that number,” Erik Lim said.
Topline's core business is commercial fuel trading and depot operations before it launched retail fuel operations. This is the storage tanks in its oil depot in Cebu
Coming Soon: 9 new Light Fuels retail stations
That’s all but a certainty at this point, given that the company is on an aggressive push to open up to nine new Light Fuels stations around Metro Cebu and Cebu province within 2024. The stations will be located in the following areas: Casili Consolacion; Yati, Liloan; Talamban; Jagobiao, Mandaue; NRA, Mandaue; MEPZ (Mactan Export Processing Zone) Gate 4; Looc, Lapu-Lapu; Tulay, Minglanilla; and San Fernando.
The stations will be divided between seven full-service stations and two Express stations. The Express stations are especially designed to cater to motorcycle riders and other light vehicles, a market that Topline feels has been as-yet underserved in Cebu. This includes dedicated pumps just for motorcycle that can accommodate up to three at any given time. The area for motorcycle refueling is also fully covered by a roof extension, unlike many other gas stations where only the central pumps are located underneath the canopy.
This specific focus on the niche market of motorcycle riders is what the company feels will set them apart from the dozens of newer oil industry players.
“According to a study, there are about one million motorcycle riders in Cebu province,” Brigitte Lim said. “That’s a huge market, and we feel that no one else is currently responding to their needs.”
In addition to the dedicated fuel pumps for motorcycles, at least some Light Fuels stations will feature solar panels and charging stations for electric vehicles, displaying the company’s acknowledgment of renewable energy resources.
A new Light Fuels retail station being constructed and is expected to commence operations in August 2024
At least two more Light Fuels stations are expected to commence “soft opening” operations by August 2024 within Metro Cebu, with the rest of the stations to follow later in the year.
Topline is well-placed to follow through on its ambitious expansion plans. On Friday, the company announced that it posted total revenues of P2.8 billion in 2023, up 33 percent compared to P2.1 billion the previous year. In the first quarter of 2024, it also registered nine percent growth on its revenues versus the same period last year.
“The company’s bullish growth is supported by resilient and strong fuel demand in Cebu Province and Metro Cebu where we operate,” Erik Lim said. “But fundamentally, this growth is attributed to the dedication of our hardworking and talented team who always seek to provide top-of-the-line service for our industry and retail customers.”
As for further expansion outside of Cebu and Central Visayas, the company said the focus is currently in its home market, where it still sees huge potential, but doesn’t discount the possibility of eventually opening in other areas, particularly in Manila and the rest of Luzon.
