Oil companies announced a possible price rollback of P0.30 to P0.40 per liter for diesel and P0.25 to P0.30 per liter for gasoline this week.
As this developed, the Department of Energy, through its Oil Industry Management Bureau (OIMB), is keeping a close eye on the implementation of the third and final tranche of excise taxes on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which took effect on January 1.
Under this tranche, additional excise taxes of P1 per liter for gasoline, P1.50 per liter for diesel and P1 per kilogram for household liquefied petroleum gas will be imposed.
There will also be an additional 12 percent Value Added Tax, bringing the total to P1.12 for gasoline and LPG, and P1.68 per for diesel.
“The DOE has been undertaking all necessary measures to ensure that all tranches of excise taxes on petroleum products are properly implemented. On top of our regular monitoring of companies’ compliance to national quantity and quality standards, the DOE-OIMB has been conducting verification inspections to make sure that that depots and terminals are complying with the provisions of the TRAIN Law,” Energy Secretary Alfonso Cusi said.
“In particular, stocks that are part of their December 31, 2019 inventories are not to be subjected to additional excise taxes. Liquid fuel retail outlets, or what we commonly call as gasoline stations, are also expected to follow the same, and are required to display a tarpaulin indicating which of their products have been additionally taxed, and the date of implementation,” he added.
Cusi assured the public that it will continue monitoring retail outlets and their implementation of the taxation scheme to uphold the best interests of all consumers.
Last year, DOE issued show-cause orders to oil firms for implementing the higher taxes prior to the depletion of their old oil inventories.
“We are ensuring that our consumers do not become subjects of profiteering,” Cusi said earlier.
