CEBU, Philippines – Cebu-based fuel solutions provider Topline Business Development Corporation has set its eyes on the niche market created by the rising number of motorcycle and light commercial vehicle (LCV) users in Central Visayas.
Established in 2013, Topline’s main business ventures took root in Cebu’s real estate and leasing industry. In 2017, the company embarked on fuel supply and distribution for clients in construction, transportation, mining, agriculture, and other commercial sectors.
Since then, Topline has registered a 53% compounded annual growth in fuel sold, starting from 2.8 million liters of diesel fuel, used by their commercial and industrial clients, in 2017 to more than 56 million liters in 2023.
Topline President and CEO Eugene Erik Lim said in a media briefing on Friday, July 26 the company had “bullish” growth for its 11th year in commercial fuel trade and depot operations, evidenced by a 33% increase in gross revenue at P2.8 billion in 2023 from P2.1 billion in 2022.
Now, Topline is seeking to grab market share from the major fuel distributors by focusing on motorcycle users’ demand for gasoline.
“We’re seeing a lot of increase, an uptick for motorcycles, and not only for motorcycles but also LCVs but again 68% of road users here in Central Visayas or Metro Cebu are motorcycles,” Lim said.
Lim referred to 2023 data from the Land Transportation Office (LTO) in Central Visayas which recorded at least 1.2 million motorcycle vehicles in the region.
Recent data from LTO Central Visayas showed that the agency released 287,502 plates for motorcycles and 200,739 plates for 4-wheeled vehicles from June 2023 to May 2024.
Lim added that the Visayas has seen an exponential growth in fuel consumption.
Based on data from the Department of Energy, the entire Visayas had a share of 14.09% of the national demand for petroleum products from January 2023 to June 2023 – a slight increase from its 13.59% market share from January 2022 to June 2022.
The Philippine Statistics Authority, in an April 2024 report, stated that Central Visayas was the fastest growing region in the country in 2023.
The main contributors to the 2023 growth were wholesale and retail trade and repair of motor vehicles and motorcycles, transportation and storage, and accommodation and food service activities.
The Topline CEO said they’re hoping to tap into the niche market brought by LCVs and motorcycles.
Based on statistics from the ASEAN Automotive Federation, the country has seen a steady 0.5% growth in its overall motorcycle and scooter sales at 685,314 units sold between January 2024 and May 2024 from 682,035 motorcycle and scooter units sold from January 2023 to May 2023.
For 2024, the company is expanding its fuel service stations managed by the company’s subsidiary, Light Fuels Corporation, via the opening of 7 Light Fuels service stations and two Light Fuels “Express” service stations in Cebu.
The first service station was opened in 2023 along A.C. Cortes Avenue in Mandaue City.
In a presentation, Lim showed a 3D rendering of the Express stations that are specifically designed for two-wheelers and/or small vehicles. He stated that it would come equipped with motorcycle washing stations and charging areas for electric vehicles.
“It’s a niche market we’re targeting for this one…When we designed it, it’s really geared towards road-users, motorcycle drivers and LCVs,” Lim said. – Rappler.com
