Senator Erwin Tulfo is set to summon the Bureau of Customs (BOC) to the Senate over reports of alleged oil smuggling at major ports, citing possible revenue losses, unfair competition, and risks to consumers.
Tulfo, the newly elected chair of the Senate Committee on Energy, said the panel will look into reports of illicit fuel imports at the ports of Cagayan de Oro, Cebu, and Batangas. The inquiry will also cover proposed amendments to the Oil Deregulation Law.
“Kadalasan ay misdeclared ang quantity ng langis na pinapasok nila sa bansa,” Tulfo said, alleging that some oil importers are working in cahoots with certain BOC officials.
“Halimbawa na lamang, ang barko na may kargang 20 million liters na petrolyo pero ang dinideklara lang kasabwat ang ilang Customs personnel, ay five million liters para ‘yun lang babayaran nilang buwis. Yung hindi diniklerang 15 million liters ay tubo o profit na nila,” he added.
Tulfo said the hearing has yet to be scheduled, but the committee intends to examine reports that smuggled oil products may be depriving the government of significant revenues while placing legitimate industry players at a disadvantage.
The senator also raised concern that taxes and duties paid by oil importers are ultimately passed on to consumers through value-added tax and excise tax.
Aside from the BOC, Tulfo said the Department of Finance will also be invited to review the tax payments of oil importers over the past several months.
Tulfo said he is also studying proposed amendments to the Oil Deregulation Law, which he described as outdated and no longer fully responsive to the country’s current situation.
Enacted in 1998, the law removed government control over fuel pricing and importation, allowing private oil companies to set their own pump prices based on global market conditions.
Tulfo said the lack of state control has burdened consumers, as the Department of Energy cannot dictate fuel prices, limit company profits, or intervene in cases of hoarding.
Among the proposed amendments are granting the government emergency pricing powers, requiring oil companies to provide a price breakdown, and introducing measures to address hoarding.