Home » Customs & Trade, Press Releases » Fuel marking program yields P126.5B in first year

The first live marking of petroleum products occurred at the Seaoil Bulk Terminal in Mabini, Batangas in August 2019 | Photo from the Bureau of Customs

The Philippine government collected P126.51 billion in duties and taxes in the first year of the fuel marking program, according to the Department of Finance (DOF).

Of the total, P107.77 billion were duties and taxes collected by the Bureau of Customs (BOC) since the start of the program in September 2019 up to September 3, 2020.

The Bureau of Internal Revenue (BIR) took in P18.74 billion in oil excise taxes from December 2019 to August 20, 2020, reported DOF.

The collection came from marking a total of 12.05 billion liters of fuel from August 2019 to August 27, 2020. Of this, 62.05% or 7.48 billion liters were diesel, 37.43% or 4.51 billion liters were gasoline, and 0.51% or 61.96 million liters kerosene.

In terms of location, 75% or 9.02 billion liters were marked in facilities in Luzon, 20% or 2.41 billion liters were in Mindanao, and 5% or 615.73 million liters in the Visayas.

A total of 20 oil firms participated in the program, with Petron Corp. leading with 2.79 billion liters or 23.12% of the total. It was followed by Pilipinas Shell Petroleum Corp. with 2.44 billion liters or 20.21%, Unioil Petroleum Philippines, Inc. with 1.29 billion liters or 10.77%, Seaoil Philippines, Inc. with 1.02 billion liters or 8.5%, and Chevron Philippines, Inc. with 1.01 billion liters or 8.46%.

The 15 other companies were Phoenix Petroleum Philippines, Inc. (878.8 million liters); Insular Oil Corp. (764.59 million liters); Total Philippines (396.38 million liters); Jetti Petroleum, Inc. (326.48 million liters); PTT Philippines Corp. (201.95 million liters); Filoil Energy Co., Inc. (185.55 million liters); Marubeni Philippines Corp. (183.06 million liters); Micro Dragon Petroleum, Inc. (135.74 million liters); Warbucks Industries Corp. (96.42 million liters); Goldenshare Commerce and Trading, Inc. (85.31 million liters); High Glory Subic International Logistics, Inc. (74.85 million liters); Era1 Petroleum Corp. (68.7 million liters); SL Harbor (51.06 million liters); Jadelink Subic Inc. (21.92 million liters), and SL Gas (18.37 million liters).

Marking of fuel products, whether imported or manufactured in the Philippines, becomes mandatory five years after the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect January 2018. Fuel marking aims to curb oil smuggling and plug revenue losses arising from the illegal importation or misdeclaration of petroleum products.

READ: Oil firms to pay fuel marking fees from Sept 4

Last September 4, BOC and BIR started collecting fuel marking fees for all manufactured, refined and imported petroleum products. The collection of the marking fees comes as the one-year coverage of costs by the government ends this month.

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