A group of oil firms representing a big chunk of the domestic market yesterday supported the implementation of the government’s fuel marking program, saying this would be helpful in the fight against smuggling and deter revenue leakages.
“We support the government’s efforts to curb smuggling, which continues to undermine the industry and the government in general,” the Philippine Institute of Petroleum (PIP) said in a statement.
PIP groups Petron, Pilipinas Shell Petroleum, Chevron Philippines, PTT Philippines, Total Philippines and Isla LPG.
“As early as last year, our members have been working closely with the Department of Finance to ensure the program’s proper and effective implementation,” the group said.
PIP said the DOF—along with the Bureau of Customs and Bureau of Internal Revenue— consulted its member-companies on the program’s draft implementing rules last June. Consultations included visits to the firms’ facilities.
“From the formulation of the [rules] to the issuance of the implementing guidelines to conducting tests and visits to the facilities of PIP members, we have been generously lending our time and expertise as a unified body fighting the same fight,” the group said.
Citing various independent studies, PIP noted that before the implementation of the Tax Reform for Acceleration and Inclusion Law, the government was losing about P40 billion in revenues due to the smuggling of petroleum products.