Petron hits oil smuggling

Ramon S. Ang: Gov’t loses P30B yearly

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About one in every three liters of gasoline or diesel sold in the country is smuggled, resulting in P30 billion to P40 billion in yearly forgone revenue on the part of the government, according to the head of the country’s biggest oil refiner.

The forgone revenue estimate is bigger than what the government expects to generate this year from higher taxes on sin products.

Ramon S. Ang, Petron Corp. chairman and chief executive officer, said studies from 2007 to 2011 showed that smuggled oil products “now account for at least a third of the total volume sold in the market.”

“(Our) retail or service station volumes have remained flat despite the fact that registered vehicles increased from 5.5 million to 7.1 million over the period,” Ang said in a phone interview.

“On top of lost government revenue and an uncertain investment climate in the oil industry, smugglers are cheating consumers since these products are of uncertain quality,” he said.

Ang said the uncontrolled oil smuggling in the country “is tax evasion in another form.”

Based on official data, the Philippines consumed a total of 110 million barrels of oil in 2012, of which 50 percent were imported as finished products.

The rest were refined in the country by Petron and Pilipinas Shell. Other companies import finished petroleum products like gasoline and diesel mostly from Singapore.

36M barrels smuggled

Besides the official fuel imports, an estimated 36 million barrels were smuggled into the country, Ang said.

Petron is majority-owned by San Miguel Corp., which is still licking its wounds from last year’s defeat in Congress where allies of President Aquino approved higher taxes on sin products for the first time in more than a decade.

Petron, which accounts for an industry-leading 34.9-percent share of the domestic market in the first half of 2012, saw its profit plunge 73 percent to P2.3 billion last year from P8.5 billion in 2011.

The huge drop in Petron’s profit came despite a 55-percent jump in revenue to P424.8 billion in 2012.

The company attributed the fall in margins to volatility in crude and product prices last year. Its expanded Bataan refinery, which cost $2 billion, is expected to start operations next year.

Watch special zones

 

For Ang, stopping oil smuggling is not “rocket science.”

“It doesn’t take much to stop these smuggling activities since you would only need to closely monitor special economic zones and other ports. I believe another way the government can monitor smuggling activities is to go after retail outlets that are selling fuel at extremely low prices,” he said.

Fernando Martinez, chairman of the Independent Philippine Petroleum Companies (IPPC), said his group shared Ang’s concerns on the rampant oil smuggling.

“We have made presentations to both the Department of Finance and the BOC (Bureau of Customs) about the problem. We have made proposals on how to check it especially in ecozones—charge all imports upon entry and just give rebates to those who use the fuel within the zone,” said Martinez in a phone interview.

Don’t generalize

But Martinez, president of Eastern Petroleum, said that Ang should not generalize that retailers selling fuel at way below market prices was an indication that they were selling smuggled fuel.

Martinez said there could be valid reasons for a retailer to sell at below-market prices.

“What if the retailer is deliberately selling at a loss just to buy market share or meet a sales quota?” Martinez asked.

“He (Ang) cannot generalize, we are law-abiding as anyone. If he has evidence, he can sue them. Also, even a big player like Shell is facing charges of smuggling,” Martinez said.

Since the industry deregulation 16 years ago, small oil companies belonging to the IPPC have boosted their market share to 25 percent, he said.

Last year, the government imposed taxes on fuel products entering the country through free ports and economic zones to help curb oil smuggling.

VAT, excise tax

The Bureau of Internal Revenue (BIR) issued in February last year a regulation that said  “the value-added and excise taxes which are due on all petroleum and petroleum products that are imported and/or brought directly from abroad to the Philippines, including the free port and economic zones, shall be paid by the importer thereof to the Bureau of Customs.”

An importer can claim credit or a refund from the customs bureau of the VAT paid on account of registered enterprises with tax privileges within a free port or economic zone. The importer can also get a refund of the excise tax paid on account of sales to international carriers of Philippine or foreign registry if the fuel was used outside the country under certain conditions, according to Revenue Regulation No. 2-2012.

The BIR issued the regulation because of findings that crude oil was being smuggled out of the free ports and economic zones.

Petroleum products imported through the free ports are exempt from the value-added tax and excise taxes provided that these are used inside the special economic zones. However, some of the fuel products found their way out of the zones and into the general market.

Finance Secretary Cesar Purisima told the Management Association of the Philippines in January last year that less than 10 percent of the fuel brought into the Subic Freeport in Zambales was consumed on the premises.

“A very small portion of the [imported] oil is consumed by legally exempt entities,” Purisima said. “In Subic, my understanding is it’s about 5 percent. Definitely, less than 10 percent is consumed within Subic.”

He said the rest was shipped out. “If it’s shipped out, then it’s subject to taxes.”

Rampant

Customs Commissioner Rufino Biazon acknowledged that oil smuggling had remained rampant in the first three years of the Aquino administration’s “daang matuwid” (straight path).

“This problem is one that has been going on way before I came to this office. The problem is that the system is one that’s been in place for so long and many benefit from the status quo. Resistance to reform is quite strong and anyone embarking on a reform program is sure to face difficulties,” Biazon said.

He said he and Purisima had agreed to tighten the monitoring of oil imports into the country, especially the ports under the BOC’s direct jurisdiction.

“We’re doing a tour of these ports to gather information and impress upon our personnel the importance of stopping the smuggling of petroleum. We’re setting up an information-gathering system for analyzing the movement of petroleum through those ports. Under consideration is the issuance of a rule limiting the entry of petroleum only in specific ports,” Biazon said.

He explained that economic zones were a different matter because the “BOC does not have principal authority” over them.

Fuel marking

“We see such ecozones as potential loopholes for smuggling. We endeavor to coordinate with the concerned authorities in economic zones to plug these loopholes. One method is the fuel-marking program, which has seen retailers caught selling marked fuel. It’s a private sector-public sector program,” Biazon said.

Despite the long odds of beating the oil smugglers, Biazon remained optimistic. “There is always hope. There is nothing I’d like more than to be the one to reform the BOC. It will surely be an achievement of a lifetime. But from what I’ve experienced, there’s nothing that those who benefit from the current ‘kalakaran’ (arrangement) would do to stop any change in the system,” he said.—With a report from Inquirer Research

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  • Mang Teban

    Another headache for P-Noy. This is one problem he must be able to solve using POLITICAL WILL. It is not remote to think that some well-placed connections in the Big Business sector and among the lobbyists in Congress has an inside info on oil smuggling. It is unthinkable that these guys won’t know. Ramon Ang who relied his statement of one in every 3 liters from studies he must have ordered is doing our country a great service of disclosing information withheld from the public and effectively promoting transparency so much wanting now among our government officials. Thank you, Petron. Now, let us see what the other oil companies got to say and do about oil smuggling. Kaya pala ang mahal ng presyo ng enerhiya dito sa bansa..nahaluhan na ng krudong nakaw at di nagbabayad ng buwis at pinapasok sa sistema ng pagbebenta sa publiko…ay naku!

  • Kamoteng Baging

    PNOY: Is there any connection with GMA?
    Advisor: I’m sure she knows at least one of the local Oil company Execs.
    PNOY: Good enough for me. Call a press conference.

  • A. H. Forrester

    Q. You mean just the lost revenue from illegal diesel alone is so huge that many of the financial woes of the country could be fixed if the problem was addressed.
    A. (Biazon) Yes.
    Q. And as Number 1. Custom’s Commisioner in the country you cannot climb all over this with you President P’noy, make the necessary changes effective immediately, and get the country heading in the right direction effective immediately.
    A. I am a lame duck, with no power, no vision, no solutions, and besides its been like this for a long time, so it’s ok. I am not very good at my job.
    Q. Is it not pathetic that you are inept and make pathetic excuses rather than fixing this problem at any cost immediately.
    A. But if Petron had not announced this fact, everything would just continue and be fine. Now by announcing this to the Press it is making work for me. Better for the BOC to leave this alone so we can continue to accept playoffs and bribes.

    • Tyril

      This is not an easy smuggling system to demolish. Its like a drug cartel where many people turn a blind eye, and many powerful people earn from it and support it. Sometimes it is not the fault of the people on top of the government, but rather the fault of those in low government positions who turn a blind eye.

      Petron announcing this farce could be the signal BOC is waiting for. Its like waiting for a complainant to file a case.

      • boldyak

        If PETRON complains, rest assured all government agency will act….baka magalit na si UNCLE…this govenrment is run by UNCLE

  • koolkid_inthehouse

    Pa EPAL lang si Biazon. Daming sabi noon bakit tahimik ka ngayon. Daming palpak kasi.

  • josh_alexei

    think the simple way for the Petro intended for the Free zone to remain in the Free Zone is to have them treated with some Colorants, some kind of neutral colorants that will not affect the quality of the Gasoline of Diesel fuel…as you know Fellows, the same is very True to the Gasoline and even whiskey and and just everything sold in the Reservation…and just the same most of them find their way out of Reservation as Contrabands, especially the Cigarrettes, But Gasoline with its Distinctive Colorant will easily Give away the Retailer outside the Reservations that he is selling Contrabands…so why not those that are Selling outside the Free Port Zone of Tax exempt Gasoline???

    • A. H. Forrester

      Good idea. Farmer’s in Canada buy special discounted ‘purple’ gas. But the problem goes beyond this since like Biazon says these old ways have been around a long time, and change cannot come easily. This ridiculous, complacent and outrageous posture surely indicates that high profile untouchables want no part of change that would affect the corrupted system and kickbacks that they want in their pockets rather than going to fixing the countries woes. I think that to put the stops on this, a guy like Ping Lacson who is screaming for a high profile Cabinet position should be made the Petro Corruption and Tax Enhancement Czar. Despite his lurid and shady past, he would relish in busting these syndicates wide open and hanging the big fish high for all to see.
      All the newly captured revenue could be monitored on a public marker to show what a little righteous straight road rallying of the troops can achieve.
      Gee…..I wonder why nobody else thought of this!

  • Juan De la Cruz

    should check the gasoline station at maraming di accurate ang metro sa gasolinahan. wala naman kaing inspection masyado.

    • http://on.fb.me/16z14Nv Angel Divera

      Wag ka pa-fuel sa Shell… no.1 madaya sa lahat kahit pa gas ka ng 1 liter sa coke bottle ayaw nila pero sa iba pwede naman, kasi halata sila if lagyan nila bote mo.

      • moks

        bawal po talaga yan … safety reason …. meron po nabibili na gas containers na merong pang sukat ….

  • Kamoteng Baging

    “We’re doing a tour of these ports to gather information and impress upon our personnel the importance of stopping the smuggling of petroleum. We’re setting up an information-gathering system for analyzing the movement of petroleum through those ports. Under consideration is the issuance of a rule limiting the entry of petroleum only in specific ports,” Biazon said.
    ===================================================================

    Fire someone and file criminal charges. That is the sure fire way of sending your message.

    • Loggnat

      Biazon is running in the mouth, lots of ideas but lacks concrete action. He is a lightweight and not much of a self starting, highly initiative performer in doing his job. In the article, it wrote about him and Purisima agreeing in tightening monitoring of oil imports in the country. It is an admission that both government officials have been remiss in their responsibilities as heads of BOC and BIR. They are just now agreeing to what to do about a long existing problem which is typical of reactive management style of both government officials. Sometimes you wonder and doubt their sincerity in actually making some discernible difference in the improvement of their sector of government. It’s like ….. let the good times and money roll in until somebody puts the problem in the forefront and when situation gets too hot, then make a lot of excuses and try halfhearted effort with a lot of fanfare for show.

    • digital link

      BOC needs a system to stop these smugglings, however, they said that the Philippines has only 2 kinds of systems, that is Social Security System and the GSIS. That is a joke of course, but one suggestion is to monitor the oil consumption inside each port every month and all the excess oil imported beyond that consumption shall be automatically added with standard taxes charged to the importer. BOC must be wise. Don’t be like the germans which are bright but not smart that’s why they lost both world wars!

  • asarin

    seems to me that biazon is a weak leader!

    • NAGMAMARUNONG

      how can he be a great leader when even failed as a follower.

  • rburke

    simple mr. Biazon..it shows you’re not part of the solution since you’ve been there for some time now..you are already part of the problem..just resign..

    • Loggnat

      It has been alleged that Biazon is accumulating and building up his election funds for his next run as a member of Congress in the near future. It cold be the reason why the lackadaisical way of running BOC.

  • http://on.fb.me/16z14Nv Angel Divera

    I deeply agree, instead of increasing taxes, let us find those smugglers first and jail them all.

    • AntiAko

      MALI! Increase taxes AND find those smugglers and jail them.

      • mongrel84

        pag nagincrease sa tax sa consumers mapupunta ang pasanin

  • zidyay

    This is incredible, The very person responsible to curb smuggling raising hands in surrender against smugglers just because ” there is nothing that those who benefit from the arrangement would do to stop any change in the system.

    What kind of comment is that? Of course, Mr. Biazon. Why will the smugglers act against their interests. You are so stupid! You should be the one to act and do something to protect the interest and welfare of the Filipino people.

    The economic and industrial zones are generally in confined locations where the exit and entry of vehicles doing business pass in and out of guarded gates. The only way diesel that landed on the ports could have been taken out of the zones and sold retail was that BOC and Economic Zone personnel and top officials turned a blind eye to these diesel-loaded trucks going out of the 24-hour guarded gates. The diesel was imported for use by establishments located in the zone. Anything taken out therefore is act of smuggling. It is simple as that.

    The economic zone is a big farce.It is a cover for a variety of illegal activities to pad the pocket of highly connected individuals. Foreigners in cahoots with local partners and government officials put up businesses in the area not to provide employment or income but, to take advantage of the porous management and control and very defective system to avoid payment of taxes. Have you heard of lives of people improving in and around the provinces and cities where ecozones are based? Take Cagayan for example.

    • duralex_sedlex

      thanks man. i totally agree with everything you said.

    • Tyril

      Mr. Biazon is saying that this fuel smuggling system is like the drug cartels in South America. Powerful and wealthy people are involved, thus this system has a very great resistance. Mr. Biazon is not raising his hands in surrender, but rather he is saying that this is a very difficult case to tackle. “Resistance to reform is quite strong and anyone embarking on a reform program is sure to face difficulties.” “It will surely be an achievement of a lifetime.”
      You cannot say that the government is not doing anything about this. It seems as difficult to deal with like the drug cartels in South America and the oil cartels in the Middle East. The people behind these can easily pay/lobby with congressmen and senators, and bribe LGUs and local government offices. This has continued for years because of their ability to do all of these bribing/lobbying.

      • koolkid_inthehouse

        Get rid of BOC and make all ports open. Tax imported good different ways. BOC is useless anyway, it makes them workers and bosses rich, less tax collection.

      • koolkid_inthehouse

        He has no balls in my opinion. He should have resign a long time ago if can’t do it. He should have told the world why he resign because he can’t fight the oil smuggler cartels. If nobody talk about it he simply keep quiet but if he caught a small time smuggler once a year he called on press conference and his picture is all over it in front page. He cried when NBI caught one of his men inside BOC.
        He’s a cry baby with no balls and not bright, he’s all talk.

      • Tyril

        So because you are complaining, can you suggest a solution to the fuel smuggling system? Can you suggest a replacement who can actually deal with the problem easily? If all you can do is complain and not do anything, then Mr. Biazon is actually more useful than you despite his flaws.

  • pedro Bato

    Please conduct also lifestyle checks on customs and BIR personnel assigned in these economic zones . . .. . kapag sobrang yaman na nyang mga buwaya dyan. .. . talagang may smuggling dyan. . . hindi lang crude oil. .

  • farmerpo

    If what Mr Ang is saying is true, no other conclusion can be reached other than there is collusion between oil smugglers and BOC rats. Oil is something you cannot put in your pocket and walk out of the ports. It needs special tankers and as far as I know, tankers for big oil companies are easily identifiable, ergo, unidentified rolling tanks are suspect. Not unless the big companies themselves are the culprits. Another thing, oil smuggling cannot be carried out with kumpits, or can it? It usually come in in huge tankers and the cargo is identified way ahead of arrival. You cannot slip oil products in vans of consumer goods either. Oil smugglers are slippery, aren’t they?

  • rickysgreyes

    PNoy send 20 people to jail THIS YEAR and watch your oil smuggling drop.

    • penoy2012

      kahit sinong 20 people?

  • Anqui

    Here we go Again…The BOC is INUTIL on enforcing its laws. Please check out how much wealth management personnel have and their life styles. I am puzzeled on how Oil and its bi-products are continually smuggled into the country without the knowledge of BOC and Law Enforcers. Ships transport it to the country and unloaded regularly somewhere into barges or along piers piped to storage tanks, and yet no one knows what’s going on. I am not a Rocket Scientist but common sense tells me that some people in the highest level in government make killing from this Smuggling.

  • wawa2172

    Talo na naman si PNoy sa mga smugglers. His best appointee at the BOC is not really the best person for the job. The data presented by Petron is so damaging that other industry players have to answer. Sa dami na nang sasakyan sa Pinas the volume of oil and diesel fuels ay di tumaas? As Eastern Pertrolium exec have reason out, some oil companies are selling fuel at a loss just to meet the quota. Why continue the business kung lugi naman pala. With smuggling, fuel should have enough surplus to bring the cost down but hindi, the companies are making profits dahil sa smuggling.

    • penoy2012

      Yung nag appoint sa BOC head, ang hindi best person for the job.

  • BatangSingapore

    hindi talaga masasawata yan smuggling kasi intsik din ang leader at nagpapatakbo ng illegal na negosyo sa pilipinas.. sila sila rin yan dahil swapang nga sa pera mga yan.

  • zeroko

    No big time smuggling can flourish without a go signal from Malacanyang.

  • 2rey3

    Sales of fuel has remained flat despite millions of additional cars plying our roads is partly due to failure of gasoline stations to issue receipts to their customers since official sales records are based on official receipts issued. The BIR and the motorists can do something on this.

  • http://twitter.com/Negastarr NegaStarr

    Comm Henares, eto ang tutukan mo. Wag yung mga small fish.

    • TotoyKalentong

      You’re barking at the wrong tree. Unfortunately Customs and Internal Revenue are two separate equal agencies (bureaus), they are both under the Dept of Finance. Henares has no power over duties levied by customs.

      • http://twitter.com/Negastarr NegaStarr

        Thank you. I agree that Comm Henares does not have power over customs duties. But take note that there is VAT on imports. So Comm Henares can go after these alleged smugglers for unpaid VAT.

      • http://pulse.yahoo.com/_JEMNLLYAP5EA7SM3A6QUOGV62Q Chris

        But you can’t go after smugglers if you no proof, and that’s still BOCs responsibility. When proven, then the BIR can charge VAT.

  • kasile

    Lumang tugtugin na yan, kami alam na namin. . Yung Big 3 rin ang nangunguna sa smuggling, Shell, Chevron and Petron. . Sumusunod lang yung maliliit pero kalahati lang ang tag declare na import volume. . Sakay din si Biazon at mga tauhan sa smuggling na yan. .

  • TUMBOKIN

    You out did yourself here Mr Ang, by blowing the whistle.
    Smuggled or pirated oil as with any pirated products ie dvd, canned goods, clothing, etc
    is illegal and should be sought after by the government. But the thing is, in some ways they are also helping not the economy but our small time businessman, keep their business up and running. You see for them it has always been a hand to mouth existence and a perpetual joggling act to survive the day. If you go after this so called pilferer, you are certainly burying the hatchet for them. A slow and sudden death is guaranteed!

  • NAGMAMARUNONG

    BARKO-BARKO LANG ANG BAGAY NA ‘YAN. ‘DI NAMAN NAIBUBULSA. BAKIT HINDI NAKIKITA SA MGA DAUNGAN ‘PAG DISKARGA. NGAYON ANO ANG PAGLALAGYAN NYAN KUNDI MGA TANKER? MERON NAMANG CHECK-POINT. AH KASI…

  • Paliwaweng

    “But from what I’ve experienced, there’s nothing that those who benefit
    from the current ‘kalakaran’ (arrangement) would do to stop any change
    in the system,” Biazonan

    Dear commissioner, kung di makayang tibagin o baguhin ang sinasabi mong ‘kalakaran’, ibig mo bang sabihin papabayaan na lang natin na ninanakawan tayo ng harapan?

  • padrefaura

    obviously, the matuwid na daan does not pass through the bureau of customs,

  • regie

    eh babaan niyo ang price tag niyo ng oil products niyo para di mag flat ang rate ng mga stations niyo. ang swapang kasi ng mga dambuhalang stations kasi ANG TAtaKAW ng mga dambuhalang oil companies na mga ito. you want your revenues to increase but you are not willing to give something in return. that is your business philosophy? get more but give them a little like scraps or better yet don’t give them anything. didn’t it enter your mind sir that your revenue remains flat becasue majority of the filipinos are not patronizing your station anymore due to your company’s greediness on profit. didn’t it enter your mind sir that the filipinos refused to be screwed anymore by the 3 DAMBUHALANG oil companies? to tell you the truth i and some friends do not patronize shell, caltex and PETRON anymore. no way sir. i go for seaoil, triple v and always the quick on the draw when it comes to rollback UNIOIL. kaya tayong lahat mga pinoy suportahan ang mga independent oil companies. ayan nararamdaman na ng mga DAMBUHALAANG mga ito na di nila pwedeng utuin ang mga consumers. Consumers have a very long memory. Screw them once and they will keep that in their mind forever. Give them a little and they will be thankful to you forever. That is basic marketing philosophy, to use your phrase sir “you don’t need to be a rocket scientist ” to know that…

  • mamer2

    It would not take a “rocket scientist” to figure out…
    WHY smugglers find it SO PROFITABLE to smuggle oil to the Philippines.

    Local GAS & OIL Companies are Outrageously OVER-PRICING as compared to our neighbors…,
    making a “killing” that is Criminal-in-Nature…, at the EXPENSE of the FILIPINOS…,
    meaning You and I…, as the VICTIMS.

  • dodong1

    “It doesn’t take much to stop these smuggling activities since you would only need to closely monitor special economic zones and other ports. I believe another way the government can monitor smuggling activities is to go after retail outlets that are selling fuel at extremely low prices,” he said. TALAGA???? c

    cge nga subukan nga ninyo kung maging successful kayo..sigurado akong mabibili rin yan mga taga ports kaya makakalusot at makakalusot yang mga smuggled oil na yan…

  • JACSy

    sipsip ng gas sa ilalim ng dagat

  • Billy Reyes

    If you hide 100 box of cigarettes & try to smuggle it could be easy.
    But Oil??? ha ha ha how does this happen a prime commodities like oil, very difficult to handle could possibly enter our country without being check by customs … for sure huge connection is behind this.
    How can we move forward if the level of corruption is something like this.. I blame all not only the government,
    Bakit sa Pilipinas ultimo plaka ng sasakyan andaming Fake, bakit ganito na tayo ka samang mga Filipino wala na gustong sumunod sa simpleng batas, wala na bang kayong natitirang kahit konting pagmamahal sa inyong bayang Pilipinas.

  • penoy2012

    Baka sisihin na naman ni Penoy si GMA. Puro tao na nya ang na sa Customs – Biazon at Lim. Mas malala pa pala ngayon – 1/3 or 33.33% ng oil smuggled. Panahon kasi ng KKK.

  • Billy Reyes

    F*@Ck them all, kaya tayo naghihikahos lahat na lang ng anggulo ng pamumuhay may korapsyon, walang gustong sumunod sa batas, lahat gagawin para malusutan ang batas, para butasan ang batas, gagawing komplikado ang simpleng batas.
    Bakit pag sa ibang bansa napaka disiplinado ng Filipino, no one really steal from somebody or from government pero bakit pag sa Pilipinas kokonto lang law abiding citizens, bakit dahil wala kayong respeto At pagmamahal sa inyong Inang Bayan

  • $44479964

    As if this news is something new. Meron bang hindi smuggled dito sa Pinas?

  • http://www.pulisnapogi.blogspot.com/ Pulis Na Pogi

    biazon: like father like son.

    anak ka nga ng tatay mong goat…

    b0b0!

  • Albert Einstien

    oil smuggling bk galing lang yan sa malampaya..ginigisa ang RP sa sariling mantika….i-review ng govt ang malampaya contracts….

  • Love God

    Offer 20% of the value of all confiscated smuggled products as reward to the informer. His/her identity must be kept confidential. You will see the income and tax generation of customs going up to 100 folds.

    How many smugglers are caught and sent to jail? Big time smuggling is economic sabotage!

    • Lapu Lapu

      Good idea. They should establish a hotline at the office of the president to receive info. This will also give confidence to the informer.

      Btw, I would like to be the first informer.

      • http://pulse.yahoo.com/_JEMNLLYAP5EA7SM3A6QUOGV62Q Chris

        direct to the president? it just shows we don’t trust the BOC chief.

    • Lapu Lapu

      I could suggest two guys if the country need to eradicate smuggling.

      1.Tommy Osmena
      2. Rodrigo Duterte

      This two guys are not corrupt, tried and tested to be honest and men of discipline and integrity. They are good managers, got idea and motivation for the job entrusted to them.

      But the problem is they may not be interested in the post.

      (just a suggestion lang po. Not in support to their election / propaganda)

  • guest

    If there is only transparency into the bank account of everybody, the money trail of these smugglers will be easy to trace. That is why I think the bank secrecy law should be repealed and all of these illegal transactions will be exposed.

  • tanga_hanga_ni_abnoy

    nilamon na ng systema si biazon at yung matapang na general lim..andun na na lang sa lilim naglilimlim ng limpak limpak na pera

  • Jlgp Jong

    Baka ganito na naman ang sasabihin ni Pnoy… si former Pres. GMA naman ang may kasalanan nito..

  • $30075310

    Kung gusto maraming paraan kung ayaw marami dahilan. 40 billion pesos loss to smuggling is no joke! that could already be used to fund the infrastructure projects the country badly need. Maghanap ng tulad kay Kim Henares. Bobo and walang yagbols tong BOC chief na to.

  • siegfeil

    mga kababayan, napakalaking sindikato nitong ‘pasipsip’ oil smuggling. isang oil executieve na kilala ko muntik nang patayin kasi hindi marunong ‘makisama’ . Mga balyenang isda ang mga leaders niyan mahirap malambat. Anu kaya magagawa ni Pres Pinoy napaka weakling na presidente yan. kumusta na kaya yung car summgling sa cagayan sa north na kuno iniimbestigahan. mahirap kalabanin sina jack jack enrile doon……

  • TEAM PNOY

    Gasoline in the Philippines costs between 55-50 pesos per liter while it is only 19 pesos (converted from Rupiah) per liter in Indonesia.

    • tyurl

      Indonesia subsidizes oil consumption. So effectively the people are still paying for the discrepancy between the retail and the actual market price through their taxes. The problem with that is those who consume big are the ones that benefit the most since they apply a uniform subsidy rate while those who consume less also benefit less. And the big consumers are either corporations or class A/B citizens. So the rich ones get the bigger share of the subsidy compared to those who are not (although some would argue that it is only right since the rich people and the corporations are also the biggest tax contributors assuming that they are paying their taxes correctly)

  • Braincleaner

    It happens because government allows it! Period!

  • les21reago

    BIAZON INUTIL

    • WeAry_Bat

      Less than 6 months, already sounding like the old times there.

      “…for so long and many benefit from the status quo. Resistance to reform
      is quite strong and anyone embarking on a reform program is sure to face
      difficulties”

      Maybe an exposition on that…Politicians? Businessmen? So no reform is better than a reform? Hm.

  • 1voxPopuli

    Mr Biazon there is still time … time for you to pass the baton.

    Comm. Henares has made drastic changes in BIR, Sec Purisima/Gov Tetangco has done well to curve inflation and manage our finances well.

    BoC has proved that Philippines is still a safe haven for smuggling.

  • Ed Angeles

    pathetic. it’s been going on for years and they can’t stop it?

    and yet they can easily tax me and prevent me from getting my second hand books that i shipped from the US claiming that i intend to sell them (said books i collected while living in the US). bollocks.

  • Garote

    Petron is insinuating that they have been paying the proper taxes. Don’t believe Petron has. If Petron is called to show its financial statements, because of continuous exorbitant oil rise, it doesn’t present its true financial position. How could it be paying its rightful taxes when it is mostly exempted by congress through its lobbying. And if it does pay taxes, it cheats the gov’t of taxes by the billions. There has been a monopoly on the oil market in the Phl since the time of Ramos, who was a true puppet of the globalist, There was never a real market competition ever since. Petron and the oil smugglers are no different from each other, The only difference is Petron is considered as a legalized smuggler. At least if we have smuggled oil, the price of oil will go down as there would be some sign of business competition, Now is the time to get lower oil price, through smuggled oil, by cutting loose the tight grip of the oil cartel on oil prices in our country.

    • YoungGen

      fair competition thru smuggling?

      • Garote

        I never used “fair” and please don’t deliberately misquote me. Maybe you prefer “fair competition through monopoly”?

      • YoungGen

        competition thru monopoly?

  • Nimrod Suaez

    36,000,000 barrels of smmugled oil is equivalent to 5,688,000,000 litters. A fuel tank truck has a capacity to hold 25,000 litters or a total of 227,520 tank trucks or 18,960 tank trucks per month for one year. That would be about 948 fuel oil tank trucks per day assuming smuggling is carried out 20 days per month…..and nobody notices 948 huge fuel tank trucks going out of the zone every day? Sounds like the vanishing 2,000 40 footer container vans does’nt it?

  • randyaltarejos

    But who are the smugglers? Can they identify them? I have insinuations that Lacson’s intention to join the Aquino administration has something to do with anti-smuggling activities. Or, perhaps, anti-organized crimes?

  • randyaltarejos

    Bakit kasi di na lang nila i-revive yung Economic Intelligence and Investigation Bureau. Or the government can create an entity that is similar in functions to that of the defunct EIIB. At least, the smugglers will now be aware that even if they connive with the customs personnel, they still have to deal with the anti-smuggling operatives outside of the BOC premises. But its activities must be properly monitored. At sana naman, hwag lamunin ng sestema.

  • LAMBFORGOVERNOR

    Welcome to the Philippines… why would the status quo wish to give up the status quo?

    And isn’t Petron part of the status quo anyway.

  • les21reago

    And the INTELLIGENCE of DANILO LIM seems not working either at BOC…This disclosure of ANG is an affront to BOC…BIAZON has more of EXCUSES..BIAZON should excuse himself and RESIGN, the better.

  • haybuhay69

    these oil companies does not even pay the right taxes, overcharges and shortchanges the people, and still they have the nerve to blame the government for lost revenue?

    I’m not for smuggling but please, if I know, they are the ones who started this too

  • NAGMAMARUNONG

    CLUE: CHECK BUNKERING IN HIGH SEAS AND DOWNSTREAM AT THE PORTS.

  • Littlefox131

    Still the sick man of Asia

  • Mother Goose

    Palitan na dapat itong si Biazon. Ano pa ang hinihintay ni Penoy? Unless nakikinabang din siya sa sistema.

  • YoungGen

    But from what I’ve experienced, there’s nothing that those who benefit
    from the current ‘kalakaran’ (arrangement) would do to stop any change
    in the system,” he said.

    Biazon is starting to buckle under the challenge/threat. Takot na din.

    Lacson?, Duterte?, Hagedorn? anybody?

  • kismaytami

    LOL! The chinkz are already complaining. Their big oil cartels are in a brink of gradual collapse due competition and smuggling.

  • amelius23

    Day in and day out, you can see fuel tankers coming out from SBMA. What is important is for the locally assigned BIR and BOC offices in the north and south exit points of SBMA to properly monitor the numbers of fuel tank trucks passing everyday. From Jan. to March this year they can easily collate all the numbers of fuel trucks that have come out from SBMA and come out with tax calculations if it jibe with actual taxes collected.This is only at SBMA and if proper monitoring are replicated on all the free ports and export zones in the country BIR and BOC can more or less ascertain if how much volume of smuggled oil are indeed entering the Phil.market under the nose of the agencies that are supposed to guard against it. It is suggested that ,major and minor oil producer and retailer association should form a task group to aid BIR and BOC agents to police the exit points of free port and export zones suspected to be the source of oil smuggling. We enjoin BOC comm. Rufy Biazon not to surrender to these big time oil smugglers. If you say that the system is already there for the continued perpetration of oil smuggling, do not lost despair but do your job as a game changer for this perennial problem and if you think you cannot go against the system be man enough to pack up your things and leave the bureau in ignominy.

  • indiosbravos2002

    Another reason not to lower fuel prices?

  • carlcid

    It doesn’t take rocket science to stop petroleum smuggling. But with a “rocket scientist” like Mr. Biazon at the helm of the Bureau of Customs, smugglers are having a heyday! The same can be said of rice smugglers, and that’s why there seems to be ample stock of rice these days. In the meantime, “Mr. Moonbeam”, Secretary of Agriculture Proceso Alcala, claims that smuggled rice is making the Philippines “self-sufficient” in rice production!

  • aldren85

    Looks like a coverup for a bad year (2012) of operations. Consider, in 2012, the gross revenues of P424.8 billion, a 55% increase from sales in 2011 and yet its profit in 2012 went down to P2.3 billion (or half a percent or .5% of gross sales) compared to P8.5 billion in 2011 (or 3% of P274.1 billion of gross sales). And yet Petron claims that the drop in margins was caused by volatility in prices of crude and oil products. Does this mean that inputs or costs of crude oil and oil products INCREASED (and ate up the margins) and Petron DID NOT INCREASE ITS SELLING PRICES? Where did the 55% growth in gross sales come from, a big increase in volume of oil products sold?

    The smuggling issue is being forwarded to hide the 55% growth in gross sales and the decrease in profits. The financial numbers, as presented in the article, do not tally. Maybe Petron should publish additional figures such as details of volume of oil products sold, average prices, input costs, non-operating expenses (like interest expense), etc. for both years so the public may know better. What is being presented here is that despite the INCREASES IN SELLING PRICES of diesel, gasoline and other oil produces in 2012, Petron DID NOT MAKE ADDITIONAL PROFIT FROM SUCH PRICE INCREASES!

  • RyanE

    I believe that this smuggling activities thrive not because of BOC’s incompetence but because of its participation. It’s the most corrupt agency there is in the government today. Time for heads to roll, I mean literally!

  • boldyak

    galingan nyo pag huli ng smugglers….magagalit si UNCLE sa inyo…kailangan bantayan ng maigi to protect PETRON…lahat ng kalaban ng PETRON akusahan ng smugglers…hahahaha…all in the name of UNCLE…teka inom muna ako san miguel beer..awww..may ari pala ng petron ay san miguel corporation..at may malaking contrata sa MALAYSIA ang PETRON….hail to UNCLE…

  • disqus_EWrSdjV1nv

    di kaya ni biazon yan. plain and simple.
    if you want to get smugglers and tax evaders, sisiw. magpanggap kang importer, huli agad yan sa customs.
    lakad ka sa 168 shopping mall, dami pa illegal na Chinese at d lang products.
    kung gusto lang talaga.
    kung gusto gumawa ng pera ng gobyerno, basawan din ang gastos at bonus na d makatarungan.
    anyway, tulungan tayo. d lang fuel na smuggled.

  • CommonSens6

    “Finance Secretary Cesar Purisima told the Management Association of the Philippines in January last year that less than 10 percent of the fuel brought into the Subic Freeport in Zambales was consumed on the premises.

    “A very small portion of the [imported] oil is consumed by legally exempt entities,” Purisima said. “In Subic, my understanding is it’s about 5 percent. Definitely, less than 10 percent is consumed within Subic.”

    He said the rest was shipped out. “If it’s shipped out, then it’s subject to taxes.”

    **********

    If only 5-10 % of legally allowed importation of oil into the Freeports is used and the
    rest is smuggled out then clearly one way to stop this racket is limit the allocated
    quantity to these exempt zones to 5-10 % of what they are getting now. If there is
    no excess then there’s nothing to sell illegally.

    To me this is a very effective way to curtail smuggling and in addition
    less resource is required to stake these “smugglers”.

  • doublecross

    anomalies of lies, corruption is root of all!

  • bicolokano

    1 in 3 liters? o come on!!! ilang % ba and market share ng big 3?? 80? 90% malamang sila din nag smuggle niyan.

    tsaka di na sila dapat magtaka kung bakit same parin ang volume ng sales kahit mas maraming sasakyan, eh taasan ba naman nila ang presyo ng gas eh.. babaan nila presyo para tumaas volume.. hehehe

  • doublecross

    hidden agenda…tagal na eto. niloloko tayo ng mga gas company.

  • noypisiTED

    One wonders upon seeing the mushrooming petroleum tanks at the Subic Free port if all those liquid stuffed inside can be gorged up within the Free port area alone? A lot of these tanks rose near the Subic Int’l. Airport endangering aviation in the vicinity. Sec. Purisima is right. Conduct investigative checks now.

  • leomar101

    Good to know that 30 billions loses a year in oil smuggling alone. Now what’s next? all these smuggling continues until now. Biazon has no balls. If he was not able to solved the 900 vans that were missing until now, how much more with the ongoing smuggling everywhere?Did Biazon give an update of the investigation about those missing vans 3 years ago? What about the rice smuggling. the poultry products smuggling, onions etc. hahahaha One simple idea is this: If there’s a will there’s a way. If the leadership is serious in solving this problem it can be done.Like the simple idea of zidyay. It can really pinned down the smugglers. The problem is how can the subordinates act if these smugglers have connection to the highest official?

  • barangayboso

    Curbing corruption… easier said than done…

  • disqusted0fu

    Smuggling of oil, rice, cars, goods, etc. There are all sorts of smuggling these days and it has been increasing rapidly since Pnoy took oath in 2010. In Pnoy’s first 3 years, smuggling has averaged around $19billion a year. Whereas in the 9 years of GMA, it was held down to just $3.8billion a year. And yet the Aquino admin still has the guts to talk about their straight path government??? And BOC still gets hailed??? Crazy!!!

  • isidro c. valencia

    It is a Gasoline Mafia in the Philippines.

    Coast Guard should do something about this long time syndicate. Sa gitna ng laot, dian nagpapaihi. Sinsalubong ang tanker or barko na may lamang gasolina at sisipsin ng barge. May ready buyer na.

    Mukhang walang nagawa ang ating intelli “drink” sa Bureau of Customs.

    The World Bank report said the Philippines is losing about P500B in smuggling includes P30 to P40B in oil smuggling. Then, we are only allotting P9B for Cash Conditional Transfer.

    BoC or Bureau of Corrupt should be reshuffled or be shaken so that rats and scoundrels should be driven out.

    Last three years of P-Noy should be for the people and not for the the politicians. This is his last chance to define what are his legacies to the people.

  • YoungGen

    and in every economic zone, there is a political clan behind. If you know where that leads you, we are back again to our conclusion about why these same crooks are running time and time again. . . It may be that the “those who benefit. . .” referred here by Chief Biazon as beneficiary, is one and the same.

  • JasonBieber

    Filipinos can’t say that they are surprised especially knowing that smuggling in the Philippines has been at its worst during the PNoy Administration. Data were released showing that smuggling in PNoy’s 2 years in office was worse than GMA’s 9 years combined.

  • Manuel_II

    I hope there would be more Oil Smuggling to bring down the price of Oil to real world prices, and not some cartel dictating what price they want to sell the product.

  • kevinmcn

    why not give those users in the zones a quota? Shouldn’t be hard to tell how much fuel they truly need then limit what they may import. Or let them purchase from the legit sources & reimburse them for the extra taxes they may pay. Just don’t let any more fuel into the zones tat is coming directly from outside the country.

  • koolkid_inthehouse

    Remember all the hollow words talking about smuggling in the late part of the year? Watch out smugglers. It’s now watch out Biazon.

  • D’ Equalizer

    If indeed BOC, is considering the matter – so seriously to go after the smugglers! Walah! They can do it “The Untouchables” way! as based on the famous true to life story of the untouchable – Al Capone. Real name Alphonse Gabriel, who is the head of a syndicate that runs illegal activities including smuggling in the city of Chicago in the early 1920s to 1931. The glory days in Al Capone’s life and illicit business ended up when a U.S. Agent gets in the case – seriously. Drives the nail hard that sent Al Capone home to jail.

    The government people can draw a lesson from the story in the west. If they need the idea and motivation, the Untouchables is a must see film…LOL

    In our country: The law comes with a teeth – if applied. The BOC and up to the Palace
    can execute the same. It’s only a matter how serious they are. Sabi nga’ ni Chavit during Erap’s impeachment – kung SINCERO ang gobyerno – kaya!

  • CmdrAdobo

    If smuggling is rampant, why oil is still expensive? Smuggling or not, i dont care that much if the oil price still the same.

  • Billy Moreno

    Smuggling is “Legal” in the Philippines, marami bang di nakakaalam?
    Without smuggling the cartel will probably double the fuel prices.

  • g.s.

    ####u%#@%$#C^%$#k you Mr. Ang. Aren’t you satisfied with 2.3billion profit??? Is there a law that could limit the profit of businesses to some degree based on their capital? Greed simply knows no bounds. That’s why there is a very big gap between the poor and the rich. Look at our politicians who simply don’t want to be left behind, “kurakot” to the max.

  • Aisa Pangdan

    Cases were filed then against Shell and Phoenix due to oil smuggling but it looks like nasa tuwad na daan ang ilan sa mga tauhan ni Pnoy. Pana-panahon lang yan. Kanya kanyang diskarte sa bawat departamento.

    Going 4 years in office, ni wala man lang napakulong si Pnoy due to graft and corruption – me nakasuhan pero hanggang dun lang, walang conviction.

  • upupperclassman

    The complaint of Petron as aired by Ramon Ang is very interesting. According to Ang, 1 out of 3 barrels of oil was smuggled. The big 3, Petron, Shell and Chevron accounted for 68% of the market or slightly more than 2/3. If all the big 3 did not engage in smuggling, then the independents which account for the 1/3 would be great suspects. Should the independents were not smuggling, then for the 1/3 of oil to remain as smuggled, then all the oil companies, big or small, were doing their share. It is ridiculous for BOC Commissioner to say that he was helpless to stop the smuggling. The oil came into Philippines in big oil tankers that are very visible. He can also stop completely the import of oil through the Freeports and have the big 3 sell oil to the tax exempt companies under tax free arrangements. If there is a will, there is way!

  • jpastor

    This is a show of greed. They want more. They bought a petrol manufacturer company in Malaysia and they form a company in Singapore to sell the products to PH. The complaining company owners are making tons of money with the transaction and they want more by exposing smuggling.

  • klepto

    obviously ang daang matuwid ay papunta sa imburnal.

  • kabayandinako

    Biazon, mawawala lang ang smuggling kung gagawan ng boss mong si Pnoy ng paraan para mapababa ang presyo ng gasolina na maituturing na pinakamataas sa buong mundo.

  • koolkid_inthehouse

    And while you’re at it, what happen to all those imported luxury cars? Did Enrile grease you slimy hands?

  • randyaltarejos

    Mr. Purisima, paki imbestigahan nyo yung mga tauhan nyo sa mga ecozones at iba pang lugar. Baka sila ay me kinalaman dito sa oil smuggling na to. Without the connivance from the BIR and customs personnel, these smugglers wouldn’t have the guts to engage in these illegal activities. Oo nga naman, tubong lugaw ang kita sa langis.

  • batukan

    if it is the only way to lower than prices of fuel anddirectly benefit us car owners, then let it be, rather than experiencing unreasonable fuel price increases brought by ‘greed’ from oil companies.

  • http://www.facebook.com/sonny.solomon.5 Sonny Solomon

    anong klaseng bansa ito? 4th world country.

  • Stuubs

    This nation deserves a triple A (AAA) rating from Fitch for outstanding performance in corruption, smuggling, tax evasion and election fraud…the poor are getting poorer while the politicians and the rich are getting even more richer …. the sick man of Asia still !

  • riccisan

    my 2 cents, if something is smuggled, it means mataas ang presyo nito sa local market. so i think better let these petroleum products come here easily and legally with less tariff, or let the local market lower their prices. easier said than done though…

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