Gov’t Eyes Upgraded Fuel Marking System Under PPP to Curb Oil Smuggling

MANILA, Philippines — The country’s fuel marking program is moving toward an upgrade after securing government funding from the Public-Private Partnership (PPP) Center to implement technological and operational enhancements aimed at curbing oil smuggling. Fuel marking, which the government began in 2019, allows authorities to identify petroleum products that may have entered the market illegally by injecting molecular markers into fuel products that have paid the correct excise taxes and import duties. READ: Fuel marking revenues climbed to P93B in Jan-April In a statement on Tuesday, the PPP Center said its Project Development and Monitoring Facility (PDMF) Committee had provisionally approved P19.16 million for transaction advisory services for a proposed PPP covering the operations, maintenance and upgrading of the Philippine Fuel Marking Program. This proposed PPP would introduce technological and operational upgrades, deploy additional field-testing units and provide training for the Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR). The PPP Center stated that these measures aim to ultimately help the government independently and sustainably manage the program. Currently, the Department of Finance (DOF) implements the fuel marking program in partnership with the joint venture of Swiss security technology firm SICPA SA and inspection company SGS Philippines Inc. The DOF plans to continue the program through a PPP following an unsolicited proposal from SICPA. The PDMF support aims to prepare and structure the project before the PPP procurement process. The funding will cover preparation of a due diligence report and tender documents, assistance during the PPP bidding process, and advisory services after contract signing until financial close. The fuel marking project was among three proposals that secured PDMF support during committee meetings in July and August. READ: Gov’t starts fuel marking to stop oil smuggling The committee also approved P60.94 million for project preparation and transaction advisory services for the rehabilitation, expansion and modernization of the Iligan City Waterworks System. The proposed project covers the rehabilitation, financing, operation and maintenance of the city’s water supply system, including its water sources, pumping stations and pipelines, as well as the construction and upgrading of supporting infrastructure. The government approved another P48.42 million for Bataan’s Bunker II-Pylon Project, which aims to create an integrated complex that will consolidate provincial offices and facilities for justice, health, and other public services. The PDMF is a revolving fund managed by the PPP Center that finances feasibility studies, transaction advisory work, tender preparation and other activities needed to develop and implement potential PPP projects. /pai