The Department of Finance (DOF) is targeting the initial implementation of fuel marking system in March as part of the government’s revitalized bid to curb fuel smuggling into the country.
Finance Undersecretary Antonette C. Tionko said the system is already undergoing the final phase of testing among different oil refineries across the country.
“For the fuel marking, the [DOF] team that’s doing it is actually going already to the refineries. So that’s ongoing now. They are testing the marker itself, the acceptability of the marker… so once it’s accepted, we will do our first marking,” Tionko said.
She explained that the system may be fully implemented in March since clearances are still being processed with the Department of Energy.
The government has earlier tapped Sicpa SA and SGS Philippines to provide a unique chemical marker capable of being embedded at a molecular level to petroleum products, such as gasoline, diesel and kerosene, thereby enabling authorities to test, identify and distinguish fuels being sold in the market.
The method will enable the government facilitate the identification of contraband fuel already being sold by fuel stations.
According to Finance Undersecretary Karl Kendrick T. Chua, the funding for implementing the fuel marking system will subsidized by a P2-billion funding for the first year.
“The first year is subsidized [and] there’s a P2 billion allocation. In the succeeding years, it will be passed on to the industry, and they may pass it on to the consumers. So if the price is P.06 per liter, and if a full tank, it’s 40 liters…they’re paying P2.40,” Chua said.
Chua earlier reported that the government loses P27 billion to P44 billion in revenues due to oil smuggling.