The implementation of the fuel marking scheme has resulted in higher reporting of volumes of fuel, thus the government expects to rake in at least P20 billion more with the program in place.
Carlos Dominguez, Department of Finance secretary, told reporters via Viber over the weekend that 2.79 billion liters of fuel have been marked as of February 7.
“This year marks the full implementation of the fuel marking program. This is the first time an administration is undertaking a fuel marking program that covers the entire archipelago.
In 2016, the estimated revenue loss for government from smuggled fuel products was between P27 billion and P44 billion,” Dominguez said during the Bureau of Customs’ (BOC) 118th anniversary celebration.
“With the full implementation of this program, we expect smuggling and misdeclaration of petroleum products to be greatly reduced, if not totally eradicated, and revenue collections to dramatically increase. This program is projected to generate an additional P20 billion in revenues,” he added.
A random testing of fuel from Phoenix Petroleum, Pilipinas Shell and Petron injected with the official chemical marker under the government’s fuel marking program was done at the BOC’s 118 founding anniversary held last Friday at the South Harbor, Port Area in Manila.
“Beyond plugging leakages, the fuel marking program will help deter the entry of sub-standard products, safeguard the integrity of automotive and heating fuels, and shield vehicles from the damaging effects of adulterated oils,” Dominguez said.
“This will not only be good for the government and for our consumers. It will likewise enhance environmental protection,” he added.
The fuel marking activity began last October. Starting this month, testing of fuel in the retail side as well as enforcement actions will commence. Gasoline, diesel and kerosene found to be unmarked will be seized, and penalties will be imposed against those storing, transporting, importing or peddling unmarked fuel.
“Once we’re assured that we’ve totally saturated the supply, obviously the testing would be more serious. But we would begin testing already at this time,” Antonette Tionko, DOF undersecretary, said in a press briefing at the BOC last Friday.
Asked if the fuel companies are cooperating, Tionko said: “They are cooperating. Some are faster in cooperating and some are not as fast. But for the large part they’re all cooperating.”
Dominguez said participating companies in the program as of February 7 include Unioil, Chevron, Phoenix Petroleum, Seaoil, Shell, Insular Oil, Filoil Energy, PTT, Petron, Warbucks Petroleum, Microdragon Petroleum (Subic), High Glory Subic International (Subic), Marubeni Philippines (Subic), Goldenshare Commercial (Subic), Jadelink (Subic) and Era1 Petroleum (Subic).
“Even before it was fully implemented, I think the fear factor of having (a fuel marking scheme has) already resulted in more, a better reporting of volume,” Tionko said.
“The number is more or less 12 billion (liters) for 2018, and in 2019, it increased to about 14.5 billion (liters). That alone… we’re seeing because of the fear factor, because last year we already announced that the fuel marking program will be implemented. Our collections from oil also increased last year,” Vincent Philip Maronilla, BOC assistant commissioner, for his part said.
