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MARATHON TERMINALS ADDING DYE INJECTION CAPABILITY FOR LOW-SULFUR FUEL OILS

 HOUSTON, Nov. 11 /PRNewswire/ -- Marathon Oil Company (NYSE: MRO) announced today that it will install automated fuel dye-injection equipment at 30 of its refined-products terminals located throughout the Midwest and Southeast.
 The targeted compi?on date is Jan. 1, 1994.
 "Marathon's commitment to dye-injection at our terminals will facilitate the sale of low-sulfur fuel oils for tax-exempt uses," said Richard E. White, vice president, marketing. "And it will ease potential cash-flow and administrative burdens on Marathon customers and end-users of Marathon fuels who are not subject to federal motor-fuel excise taxes."
 The company's decision to install dye-injection equipment is a response to recently enacted revisions to federal motor-fuel tax-collection procedures, which will take effect on Jan. 1, 1994. Under the Omnibus Budget Reconciliation Act enacted in August, federal excise taxes on diesel fuel will be imposed when the fuel is transferred from terminal storage tanks to truck transports for delivery to bulk plants, retail outlets and end-user facilities.
 Although regulations have not yet been issued by the Internal Revenue Service, it is understood that terminal suppliers will be required to collect and remit federal excise taxes on all fuels suitable for use as on-highway diesel fuel unless the fuel is dyed to indicate its tax-exempt status. These revisions to diesel tax-collection procedures were included in the budget law to combat widespread evasion of federal motor-fuel taxes.
 Low-sulfur fuel customers exempt from federal diesel excise taxes include heating oil customers, operators of agricultural and construction equipment, and state and local governments. If these "exempt" customers do not purchase dyed fuel, however, they will be required to pay excise taxes and then seek a refund, either directly from the federal government or from their immediate supplier, depending on the requirements of the yet-to-be-issued IRS regulations.
 Said White: "Petroleum marketers have voiced considerable concern that seeking refunds could result in significant cash-flow and administrative burdens both for the marketers and their tax-exempt customers. By investing in automated dye-injection equipment for our terminals, Marathon is addressing their concerns."
 -0- 11/10/93
 /CONTACT: Michael R. Dixon, 713-296-3912, or William P. Ryder, 713-296-3915, both of Marathon Oil/
 (MRO)


CO: Marathon Oil Company ST: Texas IN: OIL SU:

CD -- PG012 -- 2808 11/10/93 13:55 EST
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Publication:PR Newswire
Date:Nov 10, 1993
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