House urged to probe oil smuggling at sea

Representatives Andres Salvacion and Terry Ridon: Alarmed over petroleum smuggling at sea. congress.gov.ph

MANILA, Philippines—Two lawmakers have called for a congressional investigation into petroleum smuggling at sea and at the country’s major ports.

During a public hearing last week of the House committee on transportation, Representatives Andres Salvacion and Terry Ridon expressed alarm over reports of continued petroleum smuggling at sea.

Smuggling at sea occurs when a foreign mother vessel unloads petroleum products to local feeder vessels in order to escape detection as imported goods by customs officers.

Salvacion said he received reports that smuggling at sea was rampant in the waters of the Visayas, particularly in Samar and Leyte.

“Once the smuggled petroleum has been transferred to local feeder vessels, it will be almost impossible for customs authorities to question its source and impose proper duties,” Salvacion said.

Salvacion urged the Philippine Coast Guard to address these illegal activities swiftly.

Ridon noted that petroleum smuggling did not only occur in the Visayas but in other areas of the country like Central and northern Luzon, and through the major ports as well.

“At several stations selling generic petroleum products in Central Luzon, gasoline and diesel are sold at P48 per liter and P41 per liter, respectively, compared to the prevailing market price in the area of P54 per liter for gasoline and P44 per liter for diesel,” Ridon said.

He said while serious differences in prices may be due to vibrant competition among petroleum players, it could also indicate a rampant smuggling problem in the area.