Fuel marking system seen in place by Q4

After almost two years of delay, the implementation of the fuel marking program will be in full swing by the fourth quarter as the service provider is now preparing the necessary testing facilities.

On the sidelines of the recent Development Budget Coordination Committee meeting, Finance Undersecretary Antonette C. Tionko told reporters that Joint Circular No. 1-2019 issued by the Department of Finance (DOF), the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) on July 5 would be fully implemented in the last quarter of the year.

The service provider is currently installing field testing equipment, Tionko said.

Under the joint DOF-BOC-BIR circular, the fuel marking provider—the joint venture between SGS Philippines Inc. and Switzerland-based Sicpa SA—
under a five-year contract, must produce the duly-approved official marker, provide it in ready-to-use form and conduct actual fuel marking nationwide.

The guidelines empowered the BOC and the BIR with deputization and police authority during field testing.

In case they find adulterated, diluted or unmarked petroleum, BOC and BIR officers can seize the products and arrest the involved traders.

The BIR will supervise field testing in refineries, their attached depots, gasoline stations and other retail outlets.

Meanwhile, the BOC will oversee fuel marking in depots, tank trucks, vessels, warehouses and other fuel-transporting vehicles.

The fuel marking program mandated under the Tax Reform for Acceleration and Inclusion (TRAIN) Act that took effect in January 2018 was expected to generate additional revenue of P5 billion this year, Finance Secretary Carlos Dominguez III earlier said.

Fuel marking will cost P0.06884 per liter, which will be shouldered by the government during the first year of implementation. From the second until the fifth year, payments will come from the trust receipt created under the TRAIN law.