MANILA – The expected price hike in fuel products is not only due to the second round of taxes brought about by the Tax Reform for Acceleration and Inclusion (TRAIN) law but also because of increased oil prices in the world market, the Department of Energy (DOE) clarified on Monday.
“Nililinaw po ng DOE na ang tinatayang taas-presyo ng diesel at gasolina ay dahil sa nakatalagang pag-akyat ng presyo ng langis sa pandaigdigang merkado. Bukod [pa rito] ay ang implementasyon ng ikalawang bugso ng dagdag oil excise tax sa ilalim ng TRAIN law,” DOE assistant secretary Leonido Pulido III said in a statement.
Phoenix Petroleum Philippines announced over the weekend that it is hiking its diesel prices by P2 per liter and gasoline prices by P1.40 per liter.
Chevron Philippines Inc. (Caltex), and Pilipinas Shell Petroleum Corp. said they will hike prices per liter of diesel by P2.30, gasoline by P1.40, and kerosene by P2.00. Eastern Petroleum Corp., Petro Gazz, PTT Petroleum Philippines Inc., and TOTAL (Philippines) Inc. will implement the same changes, excluding kerosene. The changes will take effect 12:01 a.m. on Tuesday, January 15 for Caltex and Eastern Petroleum, and 6 a.m. the same day for all the rest.
Likewise, the DOE clarified that fuel prices would also depend on the inventory of the oil firm’s stocks and that the additional taxes under the TRAIN law cannot be imposed on 2018 stocks.
“Kailangang may malaking karatula sa gasolinahan na nagsasaad na sila ay naniningil na ng karagdagang excise tax at listahan ng mga produktong kasama rito,” the DOE added.
The TRAIN law provides hikes in the price of diesel by P2.50 per liter on the first year, P4.50 per liter on the second year and P7 per liter on third year onward. Gasoline prices, on the other hand, will increase by P7 per liter during the first year, P9 per liter on the second year and P10 per liter on the third year.
The same law, however, also provides that increased taxes on petroleum products will be suspended if the average price of oil in the global market reaches $80 per barrel for three months. (GMA News)