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MANILA, Philippines – In response to possible oil smuggling in the country, the government is readying the terms of reference for the implementation of a new fuel-marking scheme.
Customs Commissioner Alberto Lina said the terms of reference will hopefully be ready by next month and that he hopes to implement the fuel-marking system “as soon as possible.”
Last May, the Bureau of Customs (BOC) said that is intensifying its drive to get rid of oil smuggling in Bataan ports.
The agency said tha it t is particularly focused on stopping the illegal act of siphoning of crude from tankers, a practice known as “patulo.”
In one of the operations at the Philippine Ports Authority (PPA) port in Orion, Bataan, operatives were able to intercept a tanker truck filled with approximately 20,000 liters of stolen diesel fuel worth at least P800,000 ($17,557) inside the PPA compound, as well as a wooden hulled vessel with an empty compartment smelling of fuel complete with pumps and a hose.
New fuel marking scheme
Lina said that based on consumption, the estimated cost of the proposed fuel markings is $25 million (P1.1 billion).
He added, however, that the government is estimated to generate an additional $300 million (P13.6 billion), with the implementation of the said scheme.
A fuel-marking was already implemented in the past, but the contract for the said scheme has already ended, he said.
Swiss inspection services provider Societe Generale de Surveillance was tapped for the previous fuel-marking system.
The Customs chief also said that he wants to make some changes to the new system compared to the previous one.
In the previous system, fuel markings were placed on tax-exempt products, while no markings were made on tax-paid fuel products, Lina explained.
“It shouldn’t be that way because it means that all products without fuel-markings are tax-paid. We were discussing just a few weeks ago that the fuel-markings will be placed on tax-paid products instead. If the fuel products have no markings, it means that those are smuggled,” Lina said. – Rappler.com
$1 = P45.56
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