Gov’t seen to rake in P20B from fuel marking scheme

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The government has marked nearly 8.4 billion liters of fuel under the fuel marking program, the Department of Finance (DOF) said, with the scheme seen to help shore up much-needed revenues.

Data sent by Carlos Dominguez, DOF secretary, to reporters via Viber yesterday showed that 8.38 billion liters of fuel has been marked from September 2019 to June 11, 2020.

Majority or three-fourths of fuel marked so far by the government is in Luzon, while 20 percent and five percent are in Mindanao and Visayas, respectively.

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Participating companies include Petron, Shell, Unioil, Chevron, Seaoil Corp., Phoenix Petroleum, Insular Oil, Total-Filoil, Jetti, PTT, Marubeni, Micro Dragon, Warbucks, High Glory Subic, Filoil Logistics, ERA1 Petroleum, Goldenshare, SL Gas, Jadelink, and SL Harbour.

The DOF earlier said that the implementation of the fuel marking scheme has resulted to higher reporting of volumes of fuel, thus the government expects to rake in at least P20 billion more with the program in place.

The fuel marking program is mandated under the Tax Reform for Acceleration and Inclusion Law to curb oil smuggling and misdeclaration of petroleum products in the country, and increase revenue collection from taxable imported and locally refined petroleum products.

The program uses an official fuel marker, a unique chemical marker detectable at a molecular level, allowing for authorities to test, identify, and distinguish petroleum products with paid excise taxes in the market from those without.

Random field testing shall be conducted by Bureau of Customs, the Bureau of Internal Revenue, and the fuel marking provider on depots, tank trucks and retail stations to determine the presence and/or dilution level of the fuel marker on petroleum products subject to marking.

Fuels found to be unmarked or with marker levels below the prescribed dilution level shall be immediately subjected to confirmatory testing in an accredited testing facility of the fuel marking provider.

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