Another fuel price hike seen

MOTORIST should brace for much higher pump prices of petroleum products to be implemented next week, the Department of Energy (DOE) said on Saturday.

In its consumer price advisory, the DOE said the price of gasoline is expected to increase by P0.80 per liter.

Likewise, the cost of diesel and kerosene may go up by P0.45 and P0.40 per liter, respectively.

The DOE said that last week’s international oil trading may affect the domestic prices of petroleum products.

Adjustments on petroleum products are implemented every Tuesday of the week and may still be affected by the Friday trading activities which will be accessed on Monday.

The expected price adjustment in fuel products is on top of the new excise tax rates under the tax reform law, which are implemented on the retail or gasoline station level.

The TRAIN mandates the imposition of excise tax of P2.50 per liter on diesel starting this year. For gasoline, the excise tax will be increased by P2.65 from P4.35 per liter to P7.

Republic Act 10963 or the TRAIN law took effect on January 1.

Earlier this week, some gasoline stations have begun hiking fuel prices due to excise taxes that are part of the newly-passed TRAIN.

Energy Undersecretary Felix Fuentebella said the implementation of the next excise tax rates would depend on the old stock depletion which has not been charged with excise tax and only the new stocks as of January 1 has been charged with excise tax.

“The DOE asked retail gas stations to post in a conspicuous place a signage when the excise tax is being implemented at the retail level. That level of transparency will build better relations between the gas stations and the consumers,” Fuentebella said.

“The DOE will validate whether or not the implementation of the TRAIN is correct and fair to the consumers, the retailers and the oil companies. This will be done by randomly checking the gas stations and compare the data that has been previously by oil companies and retail gas stations,” he added.

Latest data available showed that diesel prices currently range from P32.90 to P37.99 per liter, and gasoline from P43.02 to P52.99 per liter. GMA News