DoF: Marked fuel items exceed P91B
THE value of marked petroleum products under the government’s fuel-marking program amounted to over P91 billion as of end-July, according to the Department of Finance (DoF).
Data released by Finance Secretary Carlos Dominguez 3rd on Monday showed that the actual P91.65-billion figure is equivalent to 10.66 billion liters of marked fuel products.
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., Warbucks Industries
Inc., High Glory Subic International Logistics Inc., Goldenshare Commerce, Era1 Petroleum Corp., SL Harbor Bulk Terminal Corp., SL Gas and Jadelink Subic Inc.
The program is mandated by Republic Act 10963, or the “Tax Reform for Acceleration and Inclusion Act,” to curb oil smuggling and the misdeclaration of petroleum products in the country, and increase revenue collection from taxable refined fuel items.
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 pandemic, which has wreaked havoc on businesses and economies since early this year.
The program is projected to generate an additional P20 billion in government revenues.
The Finance chief, however, added that “the disruption in supply and demand caused by the contagion has made it difficult” to estimate the impact of fuel-marking 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 on 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 would 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 undergo confirmatory tests, and corresponding duties and taxes would be collected if required.
The government shall pay a fuelmarking fee of P0.06884 per liter of fuel to SICPA SA and SGS Philippines for the first year of implementation. For the second to fifth year, this fee will be borne by petroleum companies on top of duties and taxes to be collected by the Customs and Internal Revenue bureaus, respectively.