With the third tranche of the Tax Reform for Acceleration and Inclusion Act’s on excise tax on oil, consumers must brace for price shocks at the start of 2020, according to Bayan Muna Party-list Rep. Carlos Isagani Zarate, a House deputy minority leader.
“Even if the Department of Energy is telling oil companies to first deplete their old stocks before imposing the added excise tax on oil products, without the unbundling of the prices of oil products we cannot tell for certain if the oil companies are already passing on the new excise taxes,” he said.
“Aside from unbundling oil prices for consumers to see the true prices of oil, we maintain that it is still best to repeal the TRAIN law so as to protect consumers from the upcoming price shocks like in 2018 when it was first implemented,” he added.
Under the law, diesel would go up by P1.50 per liter, while gasoline, kerosene, liquefied petroleum gas and lubricating oils would increase by P1.
Bunker fuel and petroleum coke would also increase by P1.50.
Another Bayan Muna Party-list lawmaker, Ferdinand Gaite, said “since the record high surge in prices in basic goods in 2018, prices have not gone down and it has nowhere to go but up because of the last tranche of TRAIN Law 1.”
“The supposed lower inflation in 2019 being peddled by economic managers would be wiped out with the new price increases as well as higher demand for oil in the international market,” he added.
“Again if the administration wants to shield consumers from the upcoming price onslaught then it should immediately repeal the TRAIN law,” he noted.
Meanwhile, Pasang Masda president Obet Martin on Friday said they would taking part in the filing of a consolidated petition against the excise tax hike on fuel products, scheduled to take effect on Jan. 1, 2020.
The third and final tranche of the tax hike under the administration’s TRAIN law would increase
gasoline prices by P1, increase diesel by P1.50, and kerosene by P1, according to Finance Assistant Secretary Tony Lambino.
In an interview on GMA News’ Balitanghali, heard nationwide, Martin said different transport groups would be meeting during the first week of January to determine the best course of action.