THE Energy Department, through the Oil Industry Management Bureau, gave assurances old stock of petroleum products should not be slapped the new excise tax rates.
“Consequently, the retailers should not charge the new excise tax to the consumers,” the department said in a statement.
The implementation of excise tax and value added tax for petroleum products under the Tax Reform for Acceleration and Inclusion is effective starting Jan. 1, 2018.
“The OIMB has issued an advisory to petroleum products stakeholders NOT to levy new Excise Tax rates on old stocks, considering that Excise Taxes are levied upon importation and not at the point of sale to the consumers,” Energy Assistant Secretary Leonido Pulido III said.
For VAT, the new rates under the TRAIN applicable to consumers becomes effective on Jan. 1, 2018.
In addition, the department said it stringently monitors oil trading in the international market and analyzes its effects on the domestic prices of petroleum products as mandated by the Oil Deregulation Law of 1998.
Pursuant thereto, the department observed that last week’s international oil trading may have an impact of domestic pump prices.
It said gasoline prices may increase by around P0.15 per liter; diesel may increase by around P0.60 per liter; and kerosene may increase by around P0.55 per liter.
The department also reiterates that upon a declaration of a State of Calamity, the agency is implementing a ‘price freeze’ on kerosene and household liquefied petroleum gas.
The price freeze is applicable for 15 days, commencing one day after the declaration.
Through the OIMB and the agency’s Field Offices, the DoE is closely coordinating with the oil industry players in the implementation of the Republic Act 7581, as amended by RA 10623, which imposes a “price freeze” on these basic energy products being sold in the areas affected by the calamity.