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DoE pushes for pact to stop oil smuggling

The Department of Energy is pushing for the signing of an agreement among several government agencies to stop rampant smuggling of fuel products in the Philippines.

Energy Secretary Jose Rene D. Almendras said the proposed memorandum of agreement had been submitted for approval to concerned agencies, namely the Bureau of Customs, National Bureau of Investigation, Department of Justice, Department of Finance and the Bureau of Internal Revenue.

The proposed MOA calls for the sharing of vital information that will lead to the identification of possible smugglers.

For example, representatives from the BIR can go to the gas stations to ensure that their tax payments match the recorded purchases.

The BIR can also check whether these purchases correspond to the imports of the oil company.

“But that’s a huge project because that is going to require a lot of manpower resources. But we have a proposal on that,” Almendras said.

The energy chief admitted that oil smuggling is a reality that is costing the government at least P30 billion in foregone revenues from taxes and duties.

Oil smuggling, Almendras added, has “a very significant impact on pump prices.”

Established local oil players are also feeling the pain caused by fuel smuggling and had said that it was affecting decisions to increase investments in the country.
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By: Amy R. Remo
Source: Philippine Daily Inquirer, Oct. 6, 2011
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