Marked fuel hits 9.30B liters
MARKED petroleum products under the government’s fuel marking program hit 9.3 billion liters as of July 2 this year, according to the Department of Finance.
Data released over the weekend by Finance Secretary Carlos Dominguez 3rd to journalists showed participating companies were Petron Corp., Pilipinas Shell Petroleum Corp., Unioil Petroleum Philippines Inc., Chevron Philippines Inc., Seaoil Philippines Inc., Phoenix Petroleum Philippines Inc., Insular Oil Corp., Total and Filoil Energy Co., Jetti Petroleum Inc., PTT Philippines Corp., Marubeni Philippines Corp., Micro Dragon Petroleum Inc., Filoil Energy Co. Inc., Warbucks Industries Inc., SL Harbor Bulk Terminal Corp. Goldenshare Commerce, High Glory Subic International Logistics Inc., Era1 Petroleum Corp., SL Gas, and Jadelink Subic Inc.
The fuel-marking program is mandated under Republic Act 10963, or the “Tax Reform for Acceleration and Inclusion Act,” to curb oil smuggling and misdeclaration of petroleum products in the country, and increase revenue collection from taxable imported and locally refined fuel products.
Dominguez said earlier that the program “is having a positive effect on our revenues and, therefore, on our ability to withstand the ill effects of the contagion,” referring to the coronavirus disease 2019 (Covid-19) pandemic, which has wreaked havoc on businesses and economies.
The program is projected to generate an additional P20 billion in government revenues.
The Finance chief, however, added “the disruption in supply and demand caused by the contagion has made it difficult” to estimate the impact of fuelmarking on oil smuggling.
Such smuggling was estimated to have cost the government P27 billion to P44 billion annually in revenue losses.
The nationwide fuel-testing and program enforcement on the retail side started last February 3.
Switzerland-based security ink company SICPA SA and verification and certification firm SGS Philippines were hired to implement it.
After a three-month “flush- out period,” random field testing will be conducted by the Internal Revenue and Customs bureaus, SICPA SA and SGS Philippines to determine the presence and/or dilution level of the fuel marker in petroleum products.
Fuels found unmarked or with marker levels below the prescribed dilution level would be subjected to confirmatory tests, and corresponding duties and taxes would be collected if required.
A fuel-marking fee amounting to P0.06884 per liter of fuel shall be paid by the government to SICPA SA and SGS Philippines for the first year of implementation. For the second to fifth year, the fee will be borne by petroleum companies on top of duties and taxes to be collected by the Customs and Internal Revenue bureaus, respectively.