Shell Leads National Fuel Marking Efforts
Feb 10, 2020
Pilipinas Shell conducted its fuel marking operations at its Northern Mindanao Import Facility (NMIF) in Cagayan de Oro city last November 2019 to support the government’s program on fuel marking.
Representatives from the Bureau of Internal Revenue (BIR), the BOC, and the SGS-Sicpa fuel marking consortium were invited to witness as the global energy company officially marked approximately 58 million liters of Shell’s high-quality diesel products last November 26. All four diesel tanks were certified by third-party inspection company SGS Philippines, Inc. (SGS) and the Bureau of Customs (BOC), making it the first fuel terminal facility in Mindanao to undergo fuel marking. As of December 1, both the gasoline and diesel import tank systems of the NMIF terminal’s 90-million-liter capacity were fully marked.
Following the rollout of the nationwide program in Mindanao, Shell successfully completed the fuel marking process at its Tabangao refinery in Batangas last December 11. As with the NMIF, all of the refinery’s existing inventory was certified by SGS as the BOC and other government agencies stood witness. The Tabangao facility, with a production capacity of 110,000 barrels per day, is the country’s first refinery to undergo fuel marking.
According to estimates by the Department of Finance (DOF) and the Asian Development Bank (ADB), the loss of national revenue due to oil smuggling and misdeclaration can reach as high as P40-billion. The government’s marking program establishes a system for identifying fuel that has paid the correct import and excise duties in order to ensure that they collect the appropriate amount of taxes.
Pilipinas Shell fully supports the government’s fuel marking program and continues to coordinate closely with the Department of Finance (DOF), BIR, BOC, and the Department of Energy (DOE) to ensure the successful implementation of the program. With said program consumers can be assured that the fuel products they purchase are up to standard and have passed government regulations.
“We have a responsibility to ensure that the interests of all of our customers and stakeholders are safeguarded,” said Serge Bernal, Vice President for External and Government Relations.
To help ensure safety in implementation, Pilipinas Shell is working “double-time” to install an automated fuel marking system in both the NMIF terminal and the Tabangao Refinery. While the aim is full automation, the company is working with contractors to implement a safer manual method as a temporary measure.
“At the very least, we will be able to improve the safety aspect of the process through automation,” said Bernal as he explained the company’s plans to upgrade the system to be at least “Mano-matic,” or partially automated. “We’re aiming to finish fully automating the system at our Tabangao facility by the end of next March.”
Pilipinas Shell supports the responsible development of the nation’s energy industry by protecting Filipinos’ fuel supply today and encouraging others to do the same.
Fuel storage tanks at Shell’s Northern Mindanao Import Facility
Pilipinas Shell remains committed to promoting the integrity of petroleum products
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