Philippine customs agency files charges against two independent oil firms
The Philippine Bureau of Customs (BOC), through its Run After the Smugglers (RATS) campaign, has filed cases against two independent oil firms, Jetti Petroleum Inc. and Phoenix Petroleum, among others, relating to oil smuggling and other illegal activities surrounding the importation of petroleum products.
In a statement, Jetti Petroleum Corporate Affairs Manager Leo P. Bellas denied the charge. “There has been no real case filed in the courts against our company and that we are also one with the government in resolving this issue once and for all,” he said.
Petron Corp. Chairman and CEO Ramon S. Ang has said that one in every three liters of fuel being sold has been smuggled into the country, resulting in revenue losses for the government of between Php30 billion (US$724 million) and Php40 billion (US$966 million).
Chevron Philippines Inc., one of the three largest oil companies operating in the country, urged the Philippine government to implement stricter measures to curtail the rampant smuggling of petroleum products. Chevron said the government must implement a more rigorous enforcement process to fully collect taxes from the importation of petroleum products, not only to boost government tax collection but also to create a better business environment wherein all oil companies compete on a level playing field, it said in a statement.
“While the country is currently enjoying very good economic prospects, the Philippines is missing out on vital foreign direct investments because there is limited confidence that the government can provide a level playing field for all industry participants,” said Pete Morris, country chair and general manager for international products of Chevron.