Petron Corp., the bigger of the two oil refineries in the country, started fuel marking at its facility in Bataan province in support of the government’s efforts to curb smuggling.
Petron started fuel marking on December 23 at its refinery in Bataan that supplies nearly a third of the country’s fuel demand.
“We are optimistic that the fuel marking program will significantly address fuel smuggling, which has been a constant deterrent to the continued growth of our economy. Consumers also stand to gain once everyone gets on board as it will ensure that all fuel products in the market will be legitimately sourced,” said Petron president and chief executive officer Ramon Ang in a statement.
Petron also also fuel marking at its import facility in Misamis Oriental province at the end of 2019.
“These developments in our facilities testify to our firm commitment to support the government in their fight against smuggling. We also continue to work with their fuel marking team for the installation of the Automatic Injection System (AIS) in our refinery,” Ang said.
Petron echoed the the sentiments of other Philippine Institute of Petroleum members, and expressed support to the fuel marking program as long as it is enforced on a level playing field.
Petron since 2018 has been coordinating with the Finance Department, the Bureau of Internal Revenue and the Bureau of Customs.
Petron earlier called for a level playing field, noting that despite the decrease in Philippine volumes, its stations within free port zones performed better than those outside of them.
Enterprises like service stations within the free port zones like Clark and Subic do not pay local and national taxes, including excise taxes.
Petron’s retail volume inside the Clark Freeport Zone registered a 54-percent increase over the same period a year ago.
“This level playing field is what we hope will prevail in the entire country once the fuel marking program is in place. We fully support and look forward to its implementation but at the same time, we reiterate that this mechanism will only work if all players go by the same rules,” Ang said.
“Oil smuggling has worsened in recent years and it’s not only us in the industry but also the government and the entire nation that suffer because of it,” he added.
Petron has over 2,400 retail stations in the country, the largest network in the country.
