Government collects P97 billion from fuel marking

MANILA, Philippines — The government has collected P97.19 billion in duties and taxes from almost 11 billion liters of imported petroleum products since the implementation of the Fuel Marking Program last year, the Bureau of Customs (BOC) said.

According to the BOC’s Enforcement Group, the government has already marked 10.9 billion liters of fuel since September 2019 until Aug. 6, 2020.

This translated to P97.19 billion in revenues collected during the period.

“The program’s strong performance affirms the BOC’s continued commitment to protect the borders and collect lawful revenues for the government,” the BOC said.

Under the fuel marking program, petroleum products for domestic consumption with proof of payment of taxes are injected with markers.

The program continued even amid community quarantine measures, as fuel products were exempted from movement restrictions to ensure sufficient supply of oil in the country.

“The Bureau of Customs and Bureau of Internal Revenue continue to implement the program to ensure that the market’s fuel products have paid the corresponding duties and taxes due to the government during the current pandemic,” the BOC said.

Based on BOC data, 20 companies are currently participating in the program, led by Petron Corp. with 2.5 billion liters of fuel marked.

Pilipinas Shell Petroleum Corp. and Unioil Petroleum Philippines Inc. accounted for 2.26 billion and 1.14 billion liters of total volume marked, respectively.

Other participating companies include Chevron Philippines Inc., Seaoil Philippines Inc., Phoenix Petroleum Philippines Inc., Insular Oil Corp., Total Philippines Corp., Jetti Petroleum Inc., PTT Philippines Corp., Marubeni Philippines Corp., Micro Dragon Petroleum Inc., Filoil Energy Co. Inc., Warbucks Industries Corp., SL Harbor Bulk Terminal Corp., Goldenshare Commerce, High Glory Subic International Logistics Inc., Era1 Petroleum Corp., SL Gas and Jadelink Subic Inc.

Through the fuel marking program, the government seeks to curb oil smuggling and misdeclaration of petroleum products, and increase revenue collection from taxable imported and locally refined petroleum products.

The Department of Finance estimates that the government loses as much as P40 billion annually due to oil smuggling. The DOF earlier said the government wants to plug at least half of this or P20 billion through fuel marking.