Pump prices may go up by as much as P4.50 a liter this week as a result of a double whammy of higher world oil prices and the imposition of higher excise taxes on fuel.
Jetti Petroleum Inc. estimated that diesel would go up by P2.25 to P2.30 a liter while gasoline should rise by P1.40 to P1.50 a liter starting Jan. 14, given the Mean of Platts Singapore and the current exchange rate.
Unioil Philippines had a similar, though slightly lower assessment in its own advisory.
At the same time, gas stations are expected to carry out the second tranche of excise taxes under the Tax Reform for Acceleration and Inclusion Law this week, which will add P2.24 per liter—including a value-added tax—to pump prices for both diesel and gasoline.
On Jan. 8, oil companies raised prices by P0.80 per liter of gasoline, P0.70 per liter of diesel and P0.40 per liter of kerosene after Saudi Arabia said it would cut its oil production.
READ: Oil price rollback: P1.9/liter
Oil prices also went up as demand is expected to increase in February.
Gasoline currently sells from P39.75 to P53.60 per liter, diesel from P33.45 to P40.93 per liter and kerosene from P38.42 to P48.50 per liter.
So far, the Department of Energy has monitored 444 retail stations that have imposed higher excise taxes as of Jan. 10 but there are a total of 8,006 retail stations nationwide.
DOE, through its Oil Industry Management Bureau, noted that 369 outlets are from Petron Corp., 46 from Pilipinas Shell Petroleum Corp. and 29 from Flying V.
“We are ensuring that our consumers do not become subjects of profiteering. We are issuing show-cause orders [SCOs] to the concerned retail outlets for them to explain their implementation of the second tranche of excise taxes,” Energy Secretary Alfonso Cusi said last week.
“In addition, we are also validating the prices of their fuel products whether they have already imposed the second wave of excise taxes,” Cusi said.
DOE officials previously said they expect the entire 8,006 retail stations to implement the additional excise tax by February at the latest.
The DOE-OIMB said that a retail outlet’s imposition of excise tax depends upon how quickly they exhaust their 2018 inventory.
Only new inventories in 2019, directly imported or locally produced by refineries, are covered by the second tranche of excise tax.
The agency said the level of inventories varies depending on the status of individual depots and retail outlets and product turnover.
READ: Oil companies adjust prices of gas, diesel