Smugglers now control a third of Philippine oil industry

Petron Corp. Chairman Ramon Ang said that oil smugglers now control 30-35% of the Philippine petroleum industry, accounting for Php30-35 billion (US$635.12 million-740.98 million) in lost revenues for the government. Small vessels may load fuel supplies from larger vessels stationed in international waters, often at night, which are then smuggled onshore for local distribution. Refined petroleum products can also be declared as raw materials instead, making them exempt from excise taxes. Smugglers may also undervalue their oil imports or declare lower volumes to escape from paying the correct duties or taxes. (September 21, 2009)