Oil firms start collecting additional 10% duty on diesel

The Energy Department said 644 retail stations of Pilipinas Shell Petroleum Corp., or roughly 55 percent of its network, started implementing the additional 10-percent tariff adjustment on diesel products.

Pilipinas Shell implemented an increase of P1.62 per liter for diesel (P1.45 per liter plus VAT of P0.17 per liter) to reflect the higher duty a day after raising pump prices by P1.25 per liter for gasoline, P1.10 per liter for diesel and P0.75 per liter for kerosene on Tuesday.

Energy Secretary Alfonso Cusi asked the Oil Industry Management Bureau to ensure the proper implementation of the additional 10-percent tax on crude and petroleum products under Executive Order No. 113. 

“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,” Cusi said. 

Malacanang Palace issued the EO on May 2, imposing an additional 10-percent import tax on petroleum products to augment government resources to finance programs and measures to mitigate the effects of the coronavirus pandemic and launch the country towards recovery and rehabilitation.

The department said the additional tax would be reflected in price adjustments only after oil companies exhausted existing inventories that they 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 department said that even with the additional P1.50 to P1.60 per liter tariff range, prices of petroleum products would remain low.

Cumulative rollbacks from January to date stand at P6.72 per liter for gasoline, P9.99 per liter for diesel, and P13.69 per liter for kerosene, the department said.

“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,” Cusi said.

Under EO 113, the temporary imposition of additional tariffs will immediately revert to zero upon the certification of the department that a trigger price has been reached (when Dubai crude reaches $64 per barrel), or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first 

The department expects to generate P6.783 billion from the imposition of EO 113.

Topics: Department of Energy , Pilipinas Shell Petroleum Corp , Alfonso Cusi , Oil Industry Management Bureau
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