Diesel and kerosene prices may go up this week by P0.45 per liter and P0.40 per liter, respectively, while gasoline prices could go down by P0.80 per liter, computations of the Energy department showed.
This computation, however, does not include the impact of the Tax Reform for Acceleration and Inclusion Act wherein gasoline prices are expected to go up by P2.97 per liter, kerosene by P3.36 per liter and diesel by P2.80 per liter.
“The DoE observed that last week’s international oil trading may affect the domestic prices of gasoline, diesel and kerosene,” the department said.
US crude stocks fell for the eighth straight week while buying appetite from Chinese independent refiners seemed high at the start of the new year and could largely be attributed to the fresh spate of quotas allocated.
The DoE said tension with Iran has helped fuel an oil rally and the pending decision from the White House on Iranian sanctions continues to loom large over the market, partly pushing prices higher.
The gasoline market, on the other hand, remained calm as exports from China are expected to remain high throughout January and early February.
Last week, the country’s oil firms raised diesel prices by P0.55 per liter and kerosene by P0.30 per liter but did not move gasoline prices.
As this developed, the DoE said the implementation of higher excise taxes on petroleum products would depend on the inventories of the oil firms.
“For the retail level, it would depend on the old stock depletion which has not been charged with excise tax. Only the new stocks as of Jan. 1 has been charged with excise tax. Therefore, on the retail level, it will depend on the old stock and new stock inventories,” Energy Undersecretary Felix William Fuentebella said.
The department has already asked retail gas stations to post in a conspicuous place a signage when the excise tax is being implemented at the retail level.
The department will also validate whether or not the implementation of the TRAIN is correct and fair to the consumers, retailers and oil companies.
“This will be done by randomly checking the gas stations and comparing the data that has been previously posted by oil companies and retail gas stations,” Fuentebella said.
Energy Secretary Alfonso Cusi warned oil firms against profiteering from the imposition of the higher excise tax on petroleum products.
“As directed by President Duterte, the government taxes should not profit the companies, because these are all intended for the services of the government to the public and the public alone,” he said.