Department of Energy to use technology to curb oil smuggling

MANILA, Philippines - The Department of Energy (DOE) will institutionalize the use of technology to curb rampant smuggling in the oil industry.

Energy Secretary Jose Rene Almendras said this forms part of the energy reform agenda they are pushing to ensure industry compliance to quality standards for products and facilities.

DOE director Zenaida Monsada added that they are now in the process of finalizing several schemes for the use of new technology in determining adulterated fuels.

“Part of our thrust is to improve our marker dye system. At the moment, marker dyes of the DOE only detect adulteration,” she said.

Monsada said the new marking method would be more efficient as this will be able to trace where the fuel products are coming from.

 “We are looking at the possibilities of using marker dyes that can detect source. For instance, an adulterated product is found, and we will also find out who the source of the fuel was,” she explained.

 “The marker dye system is our thrust to improve what we have now. And since the marker dye system can detect source, it can also be used by the energy department for its anti-smuggling drive,” she added.

Monsada said they would also speed up the procurement and operation of mobile testing technology.

Under the reform program for the oil industry, the DOE will also be procuring testing gadgets for liquefied petroleum gas (LPG).

Big oil companies have been complaining of rampant smuggling which have been making a big dent on their operations for years. Late last year, Petron chairman Ramon Ang cited a study that indicated that around 30-35 percent of the industry was coming from oil smuggling.

This has resulted to P30 billion to P35 billion in foregone revenues for the government.