What Is the BIR Fuel Marking Program and Who Must Comply?
The BIR Fuel Marking Program requires importers, manufacturers, and refiners of gasoline, diesel, and kerosene to add a chemical marker to their fuel before it enters the Philippine market, so the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) can field-test any batch of fuel to confirm that excise tax was actually paid. The program exists under NIRC Section 148-A to combat oil smuggling and fuel trafficking, and it applies whether the fuel is manufactured domestically, imported, or withdrawn from a Free Zone for introduction into Philippine territory.
This post is part of the site’s excise-tax coverage. For the underlying tax the marking program protects, see What Is Excise Tax in the Philippines?, and for another excise-tax compliance regime affecting manufacturers, see What Is BIR Form 2200-S? Excise Tax on Sweetened Beverages Explained.
Check Your BIR Compliance Tools FREE →What is the legal basis for fuel marking? #
The Fuel Marking Program is grounded in NIRC Section 148-A, “Mandatory Marking of All Petroleum Products,” which the TRAIN Law (Republic Act No. 10963) inserted into the Tax Code effective January 1, 2018. The provision requires that gasoline, diesel, and kerosene refined, manufactured, or imported into the Philippines — including product withdrawn from Free Zones for introduction into Philippine territory — carry an official marker after excise taxes and duties on it have been paid. The implementing joint circular describes the program as:
“the mandatory marking of refined, manufactured, or imported gasoline, diesel and kerosene in the Philippines, including those withdrawn from Free Zones for introduction into the Philippine territory, after the taxes and duties thereon have been paid.”
This wording is drawn from the Fuel Marking Program’s implementing joint circular (DOF-BIR-BOC Joint Circular No. 001.2019 / BOC CMO No. 43-2019); confirm the exact section against the BIR website before citing it in a compliance memo.
Who must comply with fuel marking? #
Compliance falls on importers, manufacturers, or refiners of gasoline, diesel, or kerosene — the parties that bring fuel into the market, not the businesses that later sell or transport it. These entities must cause the required marker to be introduced into their fuel before or upon withdrawal from a refinery or bonded warehouse, or upon importation, including product moved out of Free Zones for domestic use. Retail gas stations, fuel depots, and delivery trucks are not required to add the marker themselves, but their fuel supply is exactly what gets checked — since any batch already in the supply chain should carry a marker traceable to a compliant importer, manufacturer, or refiner.
Which issuances implement the program? #
Fuel marking was not implemented through a single numbered Revenue Regulation — it runs on a set of joint issuances between the Department of Finance (DOF), the BIR, and the Bureau of Customs. Businesses in the petroleum supply chain should be familiar with the following:
| Issuance | Role |
|---|---|
| DOF-BIR-BOC Joint Circular No. 001.2019 | Core implementing rules (IRR) of the Fuel Marking Program |
| BOC CMO No. 43-2019 | Mirrors the Joint Circular for customs-side enforcement |
| BIR RMC No. 85-2019 | BIR clarifications on the marking framework |
| DOF-DBM-COA Joint Circular No. 001.2018 (Oct. 2, 2018) | Collection and disbursement of the fuel marking fee |
| DOF-BIR-BOC Joint Memorandum Order No. 001-2020 | Guidelines on the fuel marking fee |
| RMO No. 59-2022 | BIR field-testing and implementation guidance |
Because the framework spans three agencies and several issuance types, a petroleum business’s compliance and legal teams should track updates from all three sources rather than assuming a single circular covers every rule change.
How does field testing and enforcement work? #
Marked fuel already in the supply chain is subject to random field testing, and a batch that fails is escalated to a confirmatory laboratory test before any enforcement action is taken. In practice, the process for a spot-checked batch of fuel runs in stages:
- Random selection — the BIR selects refineries, depots, and gas stations for testing; the Bureau of Customs selects vessels, customs warehouses, and tank trucks carrying imported fuel.
- Field (screening) test — an authorized team applies a handheld reactant test kit directly to a fuel sample; a clear positive reaction indicates the marker is present at the expected level.
- Confirmatory laboratory test — if the field test is negative, weak, or inconclusive, the sample is sent to a laboratory for a definitive reading before any finding is treated as conclusive.
- Consequences of a failed result — under NIRC Section 265-A (“Offenses Relating to Fuel Marking,” also inserted by RA 10963), unmarked or under-marked fuel is treated as presumptive evidence of tax evasion, which can trigger excise tax assessment and penalties, impoundment, confiscation or forfeiture of the fuel and conveyance, and criminal prosecution. Reported penalty ranges for fuel-marking and trafficking offenses cited in secondary sources run from roughly 2.5 million to 10 million pesos in fines plus 1 to 8 years of imprisonment — figures worth verifying against the statute text itself before relying on them for a specific case.
| Test stage | Tool used | Who performs it | Outcome if failed |
|---|---|---|---|
| Field test | Handheld reactant test kit | BIR (refineries, depots, stations) or BOC (vessels, warehouses, trucks) | Escalates to lab test |
| Confirmatory test | Laboratory analysis | Accredited fuel-testing laboratory | Presumptive evidence of tax evasion under Section 265-A |
Where does the program stand as of 2026? #
The Fuel Marking Program has run for several years under a service contract with SGS Philippines and SICPA, and that contract’s renewal has become a live issue in 2026. As of November 2024, reported cumulative figures put fuel marked at roughly 89.35 billion liters and cumulative tax collection attributed to the program at about 1.028 trillion pesos, with 204.18 billion pesos collected in 2024 alone. The original five-year service contract was reported to be expiring around mid-2026, and reporting in June 2026 described the DOF negotiating a proposed contract extension with SICPA valued at roughly 13.44 billion pesos. The renewal has drawn public discussion in 2026, though the specifics of that discussion should be checked against current reporting rather than assumed. Petroleum businesses should confirm the program’s current contractor, fee structure, and any transition rules directly on the BIR website rather than relying on figures that predate a contract change.
Frequently asked questions #
What is the BIR Fuel Marking Program? #
The BIR Fuel Marking Program is a government initiative under NIRC Section 148-A, inserted by the TRAIN Law (Republic Act No. 10963), that requires a chemical marker to be added to gasoline, diesel, and kerosene so the Bureau of Internal Revenue and Bureau of Customs can field-test fuel to confirm that excise tax was actually paid, helping detect oil smuggling and fuel trafficking.
Who is required to mark fuel under the program? #
Importers, manufacturers, or refiners of gasoline, diesel, or kerosene must cause their fuel to be marked before or upon withdrawal or importation, including product withdrawn from Free Zones for introduction into Philippine territory. Retail stations, depots, and transport operators do not mark fuel themselves but remain subject to random field and confirmatory testing.
What happens if fuel fails a field test? #
If a handheld reactant test kit shows a negative or weak result, the BIR or Bureau of Customs sends a sample for confirmatory laboratory testing. Unmarked or under-marked fuel is treated as presumptive evidence of tax evasion under NIRC Section 265-A, which can lead to excise tax assessment, penalties, impoundment, confiscation or forfeiture, and criminal prosecution.
Which issuances implement the Fuel Marking Program? #
The program’s core implementing rules are set out in DOF-BIR-BOC Joint Circular No. 001.2019, mirrored on the customs side by BOC CMO No. 43-2019, and clarified by BIR RMC No. 85-2019. Related issuances cover fuel marking fee collection (DOF-DBM-COA Joint Circular No. 001.2018), fee guidelines (DOF-BIR-BOC Joint Memorandum Order No. 001-2020), and field-testing implementation (RMO No. 59-2022).
How much revenue has the Fuel Marking Program generated? #
As of November 2024, cumulative figures reported roughly 89.35 billion liters of fuel marked and about 1.028 trillion pesos in cumulative tax collection attributed to the program, with 204.18 billion pesos collected in 2024 alone. Current figures should be verified against the BIR website, since the underlying service contract has been under renewal discussion in 2026.
Summary #
The BIR Fuel Marking Program turns NIRC Section 148-A into an operational check on the petroleum supply chain: importers, manufacturers, and refiners must mark gasoline, diesel, and kerosene before it reaches the market, and the BIR and Bureau of Customs enforce it through random field tests backed by confirmatory lab testing, with NIRC Section 265-A treating unmarked or under-marked fuel as presumptive tax evasion. The framework runs on joint DOF-BIR-BOC issuances rather than a single regulation, and the underlying service contract is itself in transition in 2026 — petroleum businesses should confirm current terms on the BIR website rather than assume the figures above still hold. For the broader excise-tax rules this program protects, see What Is Excise Tax in the Philippines? and What Is BIR Form 2200-S? Excise Tax on Sweetened Beverages Explained.