Fuel marking bids up for submission this month

The two qualified bidders for the implementation of nationwide fuel marking were given until July 27 to submit their respective bids as the government eyes to roll out the program under the Tax Reform for Acceleration and Inclusion (TRAIN) Act before the end of this year.

In a July 13 bid bulletin, the Department of Budget and Management’s Procurement Service (DBM-PS) moved by one week the deadline for submission and opening of bids from the July 20 schedule.

Jaime M. Navarrete, chair of the bids and awards committee, earlier told the Inquirer that during the pre-bid conference on July 6, the steps for the preparation of bidders’ technical and financial proposals were clarified.

Last month, Texas-based Authentix Inc. and the joint venture between Switzerland-based SICPA SA and SGS Philippines Inc. were prequalified to bid for the fuel marking scheme which was aimed at arresting oil smuggling.

The DBM-PS and the Bureau of Customs had set the price ceiling for the fuel marking at P0.08 per liter over a five-year period.

The firm to be chosen by the government was expected to assist in establishing and operating a fuel marking system that will supply and inject fuel marker in all taxable oil products, except Jet A-1, Avgas, Crude Oil and LPG; implement and manage a fuel testing program, including fuel analysis and data management, nationwide; train and ensure technology transfer to the BOC and Bureau of Internal Revenue personnel.

The bidders will be rated based on track record in implementing fuel marking here or abroad, qualification of personnel and current workload relative to capacity.

The government will pay the contract cost for the first year of up to P1.96 billion in case of overperformance in the actual volume of fuel marked.

For 2018, about 21.9 billion liters of fuel are expected to enter the country’s 25 ports and sub-ports. This is expected to rise to 26.6 billion liters by 2022.
Based on Department of Finance estimates, revenue losses due to oil smuggling and misdeclaration hit P26.9 billion in 2016, almost half of the P52.6 billion collection of the BOC and BIR that year.

Manila-based Asian Development Bank placed the country’s revenue loss due to oil smuggling at P37.5 billion yearly.