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Combined BOC and BIR enforcement of fuel marking raised P453.43 billion in revenues
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Field checks that the two bureaus have conducted at fuel stations nationwide led to the collection of the additional revenue
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More than 47,000 liters of seized unmarked fuel were donated to the military
Combined efforts by the Bureau of Customs and Bureau of Internal Revenue (BIR) in combatting potential oil smuggling through fuel marking had added P453.43 billion to government coffers as of June 17.
Finance Secretary Carlos Dominguez on June 21 said the BOC contributed P423.62 billion and the BIR P29.81 billion in revenues as a result of the fuel marking scheme.
The two agencies assessed a total of 43.05 billion liters of fuel for the year to June 17, Dominguez said. Diesel comprised 61% of the volume at 26.11 billion liters, gasoline made up 16.72 billion liters and kerosene, 218.15 million liters.
Dominguez said nearly three-fourths of the fuel, or 31.81 billion liters, were tested at oil firms in Luzon. Operators located in Mindanao accounted for 8.9 billion liters while those in the Visayas were found in possession of the remaining 2.34 billion liters.
Petron Corp. topped the assessment with 24% of the volume at 10.47 billion liters. Pilipinas Shell had 7.69 billion liters and Unioil Petroleum Philippines accounted for 4.47 billion liters.
Insular Oil Corp. held 3.71 billion liters and Seaoil Philippines had 3.57 billion liters.
The BOC and BIR “stamp” the fuel delivered at terminals using a chemical identifier before it can be transported to retail stations. The two agencies then verify at the stations whether the fuel they sold has been marked.
Seized petroleum products are donated to another national government agency, such as the armed forces, upon the approval of the finance secretary.
Earlier this month, BOC donated 47,356.8 liters of seized unmarked fuel to the Armed Forces of the Philippines and the Philippine Coast Guard. Dominguez approved the turnover of 41,356.8 liters to the PCG and 6,000 liters to the military.
“These fuel stocks were seized during the BOC’s enforcement activities under the Fuel Marking Program,” the DOF said in a press release on June 1.
Section 1141 of the Customs Modernization and Tariff Act (CMTA) permits goods that are subject to forfeiture proceedings to be donated to another government agency upon approval by the Finance Secretary.
According to the CMTA, the AFP will provide manpower to assist the BOC in its law-enforcement activities, while the BOC will donate the seized fuel to the military.
BOC seized around 11,000 liters of diesel fuel on February 24, 2021, inside the premises of Joycel Bus Lines in Caloocan City after field tests showed the fuel was unmarked, meaning no duties or taxes were paid for it.
The BOC also seized 23,999 liters of unmarked fuel from the Lemiz Fuel Station and Star Oil/Min Ley Gasoline Station, both in Meycauayan, Bulacan, and at the Fuel Source Gas Station in Cabanatuan City, Nueva Ecija, during several field testing operations in Metro Manila and nearby provinces late last year.
