Some petroleum stations have started implementing the additional 10-percent tax on crude and petroleum products, according to the Department of Energy (DOE).
The DOE said Shell Philippines has reported that 644 of their liquid fuel retail outlets have implemented the tariff adjustment for diesel products only, with this week’s adjustments generally reflecting upward developments in the global oil markets.
President Duterte signed Executive order (EO) 113 on May 2, temporarily imposing an additional 10 percent import tax on petroleum products to help augment government funding in the fight against Covid-19.
The additional tax should be reflected in price adjustments only after oil companies have exhausted existing inventories that have been purchased prior to the issuance of EO 113. Projections based on their inventory reports indicated that the added costs might be included beginning the third week of June.
The government expects to generate a total of P6.78 billion from May to December this year from the additional oil import tariffs.
Energy Secretary Alfonso G. Cusi said Wednesday that he has directed the DOE-Oil Industry Management Bureau (OIMB) to ensure the proper implementation of the additional 10-percent tax on crude and petroleum products.
“Upon the release of EO 113, our Oil Industry Management Bureau immediately met with industry stakeholders to discuss the way forward, including their strict compliance with the EO’s guidelines,” said Cusi.
The DOE noted that even with the additional P 1.50-P 1.60/liter tariff range, prices of petroleum products continue to remain low. Cumulative rollbacks from January 2020 to date stand at P6.72/liter for gasoline, P 9.99/liter for diesel, and P 13.69/liter for kerosene.
“Protecting our consumers is always our top priority. We will not allow any unfair practice to derail consumer interests, especially given the challenges we continue to face in the midst of the pandemic,” said Cusi.
Under EO 113, the temporary imposition of additional tariffs will immediately revert to zero percent upon the certification of the DOE that a trigger price has been reached (when Dubai Crude reaches $64/bbl), or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first.
Last Tuesday, oil firms raised gasoline prices by P1.25 per liter, diesel by P1.10 per liter and kerosene by P0.75 per liter.
The price adjustment last June 16 was the third consecutive price hike for diesel and kerosene since the start of the month. Prior to this week’s price hike, gasoline prices also increased last June 9.
Oil firms adjust their pump prices every week to reflect movements in the world oil market.
Read More: Oil firms start collecting additional tax | Lenie Lectura
