Gov’t to start technology procurement for fuel marking

The government next month will start the procurement process for the fuel marking system to be implemented in the second half of next year as part of the first tax reform package, Department of Finance officials said.

Finance Undersecretary Antonette C. Tionko told reporters last week that the terms of reference would be completed this month, to be followed by its publication in a newspaper to invite bidders.

“Procurement is expected to start by December. The process will be finished by the first quarter, and we want to implement the system by the second half,” Tionko said.

Several parties have expressed interest to bid as supplier of the fuel marking technology, Tionko added.

Finance Secretary Carlos G. Dominguez III said they would study what type of technology to use for the fuel marking.

“They offer different systems. There’s molecular. The simplest is color, but that color fades—I think that is the cheapest. Then there is the very high tech,” Dominguez noted.

Tionko said stakeholders have expressed concern about “at what point do we point the marker.”

Also, Dominguez said they have to study the material to be procured, the way it would be applied as well as the way to test it.

For its implementation, the Bureau of Internal Revenue will have to be trained to check fuel markers in locally processed oil, while the Bureau of Customs will check imports, Dominguez added.

DOF and BOC officials had said that the fuel marking system would generate P20 billion in additional revenue for the government and combat oil smuggling. —BEN O. DE VERA