December 01, 2020

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Philippines to resume fuel marking program

Philippine Customs Commissioner Alberto D. Lina said that the Bureau of Customs (BOC) plans to issue the terms of reference for the bidding of a fuel marker supplier next month.

He said the program might also be implemented through a public-private partnership (PPP) agreement.

The Philippine government’s fuel-marking program was first implemented by former Customs Commissioner Napoleon L. Morales but was later discontinued. At that time, SGS Philippines Inc. was the accredited service provider for the mandatory marking of imported duty and tax-exempt diesel fuel and kerosene.

Unlike the previous program, however, this time the BOC wants to mark all shipments whose duties had been paid for, including locally produced petroleum products. The move aims to improve BOC’s collection of duties and taxes on petroleum products. According to Lina, the initiative could lessen rampant oil smuggling in the country. He cited the discrepancy between the sales volume of oil with paid duties and taxes and actual consumption of petroleum products.

However, the cost may be prohibitive, as markings, which would be shouldered by oil companies are estimated to cost PHP 0.07 (USD 0.001) per liter.

“We’re still studying this because oil companies may not agree to pay 7 centavos,” Lina said.

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