Monday, January 6, 2020

Petron offers refinery for fuel marking program


Published January 3, 2020, 10:00 PM By MYRNA M. VELASCO

Leading oil industry player Petron Corporation has offered its 180,000 barrels-per- stream-day refinery in Limay, Bataan as the advancement point for the fuel marking activity that is being administered by the Department of Finance.
The fuel marking program is being instituted as a measure for the government to keep a tight rein against oil smuggling, an industry menace that has been denying the State coffers some ₱30 billion to ₱50 billion worth of tax revenues annually.
The refinery of Petron is currently the biggest within its league in the country, hence, fuel marking exercise at the facility could serve as a landmark activity under the program.
The oil company said it will be collaborating with the fuel marking team “for the installation of the automatic injection system (AIS) in our refinery.” The third party fuel marker-contractor consigned by the DOF is SICPA-SGS.
By latter part of last year, Petron first opened its import facility in Misamis Oriental for the government-underpinned fuel marking exercise.
Petron President and CEO Ramon S. Ang is raising hopes that the “fuel marking program will significantly address fuel smuggling,” which he opined is “a constant deterrent to the continued growth of our economy.”
In his view, if all players in the oil sector will already be placed on equal footing primarily in the payments of duties and taxes for all petroleum products being sold, “consumers will also stand to gain once everyone gets on board as it will ensure that all fuel products in the market will be legitimately sourced.”
Ang emphasized such progress in fuel marking activities at Petron facilities serves as a testament “to our firm commitment to support the government in their fight against smuggling.”
Petron noted that even at the level of crafting the rules and parameters on the fuel marking policy, it has already been extending its support to the concerned government agencies – primarily the DOF, Bureau of Internal Revenue (BIR) and the Bureau of Customs.
Ang cited an example in previous statements to the media that when all players are on a level playing field – like what has been happening at the freeport zones, it becomes apparent that oil firms can operate viably without getting undercut by competitors which may have been evading the payment of rightful taxes.

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