Fuel Marking Program PPP Secures P19.16M Advisory Support, Project Advances

MANILA, Philippines — The proposed public-private partnership (PPP) aimed at modernizing and sustaining the country’s fuel marking program (FMP) has advanced after securing P19.16 million in technical and transaction advisory support. The provisional approval by the Project Development and Monitoring Facility (PDMF) committee was made during its sessions on July 12 and Aug. 12. The FMP is a government initiative to combat fuel adulteration and tax evasion by marking fuels with unique security markers. The PPP aims to enhance the program's sustainability and efficiency through private sector participation. The P19.16 million in advisory support will fund technical studies, transaction structuring, and legal and financial advice to ensure the PPP is structured effectively and attracts qualified private partners. This support is crucial for moving the project forward from its planning stage. Fuel marking is seen as a critical tool for the Bureau of Internal Revenue (BIR) to improve tax collection from the fuel sector, which has been a significant source of revenue leakage. By accurately tracking fuel consumption and sales, the government can ensure that the correct taxes are paid. The PPP model is being employed to leverage private sector expertise and capital for the program's long-term development and operation. This approach allows the government to benefit from private sector efficiency while retaining oversight and ensuring public interest is protected. Once fully implemented, the enhanced FMP is expected to significantly boost government revenues, curb illicit fuel trade, and create a more level playing field for legitimate fuel companies operating in the Philippines. The project's progress will be closely monitored by the PDMF committee and other relevant government agencies.