Chevron Philippines Inc. (CPI), marketer of the Caltex brand of fuels, lubricants, and petroleum products, has undertaken live fuel marking at its import terminal in San Pascual, Batangas, making its products the fifth batch to undergo the Philippine government’s fuel marking program.
CPI said the fuel marking activity on November 11 made it the first among the Big 3 oil companies in the country to comply with the government’s fuel marking regulation. Fuel marking aims to curb oil smuggling in the country by placing a molecular marker on imported, manufactured and refined fuel products such as gasoline, diesel, and kerosene.
“CPI supports government’s initiative to curb fuel smuggling through this fuel marking program. We hope this program will level the playing field among the industry participants and ensure that all oil companies pay the correct taxes and help build the nation,” CPI country chairman Louie Zhang said in a statement.
Following the recent completion of implementing rules for the fuel marking program, CPI said gasoline, diesel and kerosene will be tested for compliance with the prescribed dilution level, whether at the refinery, terminal or retail sites.
Other facilities that have gone through fuel marking are Unioil in Bataan, Insular Oil Corporation in Subic, and Seaoil Bulk Terminal in Mabini, Batangas, the last conducting the activity twice.
Marking of fuel products, whether imported or manufactured in the Philippines, becomes mandatory five years after the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect January 2018.
Formally launched last February, the fuel marking program also includes random field testing and confirmatory tests to check for compliance of the fuel required to be marked.
Six months after the initial marking, all petroleum products found in the domestic market, including those stored in storage tanks, depots and terminal facilities, will be tested for compliance with the fuel marking program.
This means that by February 3, 2020, all gasoline, diesel and kerosene products are expected to have been completely marked.
Bureau of Customs and Bureau of Internal Revenue personnel will then start field testing, and if necessary, impose penalties on oil companies proven to have unmarked, adulterated and/or diluted fuel.
The Department of Finance expects to collect an additional P20 billion in revenues with the full implementation of the fuel marking system next year.
