Senate Committee on Energy chair Sen. Erwin Tulfo has called on the Department of Finance (DOF) and the Bureau of Customs (BOC) to appear before the Senate over reports of continued fuel smuggling at several ports across the country.

Tulfo said the inquiry will examine alleged oil smuggling activities at the ports of Cagayan de Oro, Cebu, and Batangas, as well as proposed amendments to the Oil Deregulation Law.

He alleged that some oil importers, in connivance with corrupt Customs personnel, have been underdeclaring fuel shipments to reduce taxes and duties.

"Kadalasan ay misdeclared ang quantity ng langis na pinapasok nila sa bansa," Tulfo said.

He cited an example in which a shipment carrying 20 million liters of petroleum products is allegedly declared as only 5 million liters, allowing smugglers to evade taxes on the remaining cargo.

While no hearing date has been announced, Tulfo said lawmakers will examine how illicit oil imports may have deprived the government of billions in revenue, distorted competition in the fuel industry, and affected consumers.

The senator also said the DOF would be asked to review the tax payments of oil importers over the past several months.

Tulfo is likewise pushing for amendments to the Oil Deregulation Law, which he said no longer reflects current market conditions.

Among the proposed reforms are granting the government emergency powers to intervene in fuel pricing, requiring oil companies to disclose price breakdowns, and strengthening measures against fuel hoarding.

The BOC is actively fighting oil smugglers in the country, using both field enforcement operations and tech-driven tracking programs.

The DOF said the Philippine government loses an estimated P40 billion annually due to oil smuggling and illicit fuel trading.

This figure stems from unpaid value-added taxes (VAT) and excise taxes, creating a severe revenue deficit for state infrastructure and social programs.