The government’s campaign to curb oil smuggling has extended to Mindanao region beginning with the marking of 60 million liters of diesel fuel of Pilipinas Shell Petroleum Corp. in Cagayan de Oro.
The Pilipinas Shell’s first marking operation conducted in its maintained Northern Mindanao Import Facility (NMIF) last Sunday was witnessed by Customs officials and representatives from fuel marker consortium Sicpa SA-SGS Philippines.
The operation in Cagayan de Oro was followed by a preliminary inspection conducted by officials from the Department of Finance, Bureau of Internal Revenue, Department of Budget and Management and Bureau of Customs to oil terminals of Phoenix Petroleum and Insular Oil in Davao.
The inspection, according to Customs deputy commissioner for enforcement and Fuel Marking Program head Teddy Raval, is required prior to the marking of fuel products.
Under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion law, petroleum products that are refined, manufactured, or imported to the Philippines such as but not limited to, unleaded premium gasoline, kerosene, and diesel fuel shall be marked by an official marking agent after payment of taxes and duties.
By Feb. 3, 2020, all gasoline, diesel, and kerosene retailed in the country are expected to be marked. To date, around 435 million liters of fuel have already been marked.
Petroleum companies who have already engaged the enforcers and started to have their fuel marked are: Seaoil, Pure Petroleum Corp., Phoenix Petroleum Corp., Unioil Petroleum Philippines, the entire network of Chevron Philippines, Inc. and Shell NMIF.
The program was first launched with the live marking of petroleum products at Seaoil Bulk Terminal in Mabini, Batangas.
It is expected that within six months after the initial marking, petroleum companies have already complied and worked with the Bureau of Customs in having their products marked.
Petroleum products found in the domestic market, including those in storage tanks, depots and terminal facilities shall be tested for compliance under the program.
The fuel marking program is mandated to curb oil smuggling and misdeclaration of petroleum products in the country, and increase revenue collection from taxable imported and locally refined petroleum products.
An official fuel marker that has a unique chemical marker detectable at a molecular level is used. This allows for authorities to test, identify, and distinguish products with paid excise taxes in the market from those without.