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SECTION 2. Definition of Terms – For purposes of these regulations and for a more effective enforcement and collection of specific taxes, the following words and phrases shall have the sense and meaning indicated below:

1. The term “specific tax” means an excise tax which imposes a specific amount based on weight or volume capacity or any other physical unit of measurement.
2. The term “volume capacity” is the quantity of petroleum products at air at the time of removal from the place of production.
3. The term “at air” is the room temperature or of the environment in which any physical or chemical event occurs.
4. The term “ basestock” is a residue left from distillation or refining or the bottom products derived from distillation.
5. The term “high vacuum distillates” includes lubricants, waxes, asphalts, and greases which are derived from distillates boiling above 370 degrees centigrade and are separated by vacuum distillation and then treated and refined to meet quality requirements.
6. The term “aromatic extracts” means extracts derived from aromatic materials produced by solvent extraction using N- methylpyrrolidienone, phenol, or furfural which are common solvents and includes BTX (benzene, toluene, xylene) from naphtha fractions used for chemical manufacture, upgrading middle distillates such as kerosene, diesel, and jet fuel.
7. The term “petroleum additives” means any material which, when incorporated in finished petroleum products supplement their natural characteristics and improve their performance in existing applications or broaden the areas of their suitability.

Petroleum Products		Rate of Tax
a)	Lubricating oils and greases including but not limited to basestock for lube oils and greases, high vacuum distillates, aromatic extracts and other similar preparations and additives for lubricating oils and greases whether such additives are petroleum base or not.	P4.50 per liter
b)	Processed gas	0.05 per liter
c)	Waxes and petrolatum	3.50 per kilogram
d)	Denatured alcohol (motive power)	0.05 per liter
e)	Naphtha and regular gasoline	2.28 per liter
f)	Premium gasoline	2.52 per liter
g)	Aviation turbo jet fuel	2.38 per liter
h)	Kerosene	0.50 per liter
i)	Diesel fuel oil	0.45 per liter
j)	Liquefied petroleum	0.00 per liter
k)	Liquefied petroleum (used for motive gas power)	0.45 per liter
l)	Asphalts	0.56 per kilogram
m)	Bunker fuel oil	0.00 per liter
n)	Naphtha (used as a raw material)	0.00 per liter

SECTION 4.       Manner of Removal – Petroleum products which are taxed by law in kilograms or liters shall be removed from the place of production based on the unit of measurement prescribed by law, i.e. in kilograms, liters, or at air, as the case may be.  The same units of measurement shall also be used in recording, reporting, and monitoring of such products.

SECTION 5.       Illustrative Computation of Specific Tax on Petroleum Products –

A.  Case I – Tax due on 500 metric tons ( mts.) of diesel fuel oil removed from the place of production on October 1, 1990.

1 mt. of diesel fuel oil      =    1,200 liters ( lts.)

                                              ( standard conversion)

Specific tax rate on diesel: P0.45 per liter

COMPUTATION:

B. Case II – Tax due on 1,000 liters ( lts.) of grease removed from place of production on October 1, 1990.

Specific tax rate on grease: P4.50 per liter

COMPUTATION:

1,000 lts . x P4.50   =    P4,500.00 specific tax due to be paid within 15 days ( Oct. 1-16, 1990) from date of removal from the place of production

All taxes due on domestic petroleum products are payable within 15 days from date of removal from place of production.

C. Case III – Tax due on importation of 500 drums at 210 liters (standard content) of lube oil additives due for release from customs custody on October 1, 1990.

1 drum = 210 liters (or as to actual volume per verification by BIR)

Specific tax rate on additives: P4.50 per liter

COMPUTATION:

All taxes due on importations of petroleum products shall be paid by the owner or importer thereof before the release of such product from customs custody.

SECTION 6.  Applicability of Petroleum Products Regulations – The provisions of Revenue Regulations No. 13-77 not inconsistent herewith, particularly in the manner of payment of specific tax, verification, recording and monitoring of production and removals and such other administrative provisions are hereby adapted to form part of these regulations.

SECTION 7.  Penalties – Any violation of these regulations shall be subject to the pertinent penalties prescribed under Title X of the National Internal Revenue Code, as amended

SECTION 8. Effectivity – These regulations shall take effect upon approval.

Adopted: 3 Oct. 1990