30% of automotive fuel in PH is smuggled, says industry exec

That's a lot of untaxed petroleum
by Vernon B. Sarne | Sep 3, 2012

Smuggled fuel

During the media presentation for "Drive City," the country's "first-ever live traffic road competition that focuses on safety, strategy and skills," an executive of Total Philippines, the oil company that's sponsoring the event, told TopGear.com.ph that a significant amount of automotive fuel consumed in the country is actually smuggled.

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"About 30 percent of the total fuel (gasoline and diesel) used up by motor vehicles in the Philippines is smuggled," said Total Philippines corporate communications manager Malou Espina, citing a study made by the Philippine Institute of Petroleum, our national association of oil companies.

"There has been a significant increase in the volume of cars sold in the country," explained Espina. "And yet the demand for fuel has even dipped overall."

Which brings us to an important point: That means a good amount of fuel entering the country is untaxed and has questionable quality.

Which then leads us to an equally important question: Who's responsible for the fuel-smuggling?

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