Consumers can expect to pay more for their cooking gas and face even more price shocks as new excise taxes on oil products kick in starting this month.
Cooking gas prices are expected to rise to by as much as P83.05 per 11-kilogram tank to reflect the higher price of liquefied petroleum gas in the world market.
Oil companies raised the price of LPG by P6.74 to P7.55 per kilo and auto LPG by P4.25 per liter effective Jan. 1.
Petron Corp. and Phoenix Petroleum Philippines raised the price of LPG by P7.55 per kilo while rival Isla LPG raised its price by P6.74 per kilo.
READ: Petron leads LPG price hike, oil cut
Before the increase, LPG sold for P607 to P695 per 11-kilo tank with prices varying depending on the brand, location of the station and market forces.
On Tuesday, the oil firms also raised the price of gasoline by P0.85 per liter, diesel by P0.50 per liter and P0.35 per liter for kerosene to reflect the movement of oil prices in the global market.
Year-to-date adjustments stand at a net increase of P7.31 per liter for gasoline, P4.6 per liter for diesel and P1.56 per liter for kerosene.
The oil firms adjust pump prices on a weekly basis and LPG prices on a monthly basis.
Meanwhile, two opposition lawmakers on Wednesday warned that with the third tranche of the Tax Reform for Acceleration and Inclusion Act’s excise tax on oil, consumers should brace for price shocks at the start of 2020.
“Even if the Department of Energy (DOE) 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,” said deputy minority leader and Bayan Muna Rep. Carlos Zarate.
“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, the excise tax on diesel will rise by P1.50 per liter. Gasoline, kerosene, liquefied petroleum gas, and lubricating oils will go up by P1.
Bunker fuel and petroleum coke will increase by P1.50.
Bayan Muna Rep. Ferdinand Gaite noted that since the record high surge in prices in basic goods in 2018, prices have not gone down, but the last tranche of the TRAIN Law will reverse this trend.
“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,” Gaite said.
“Again if the administration wants to shield consumers from the upcoming price onslaught then it should immediately repeal the TRAIN law,” he added.
Senator Sherwin Gatchalian called on the Department of Energy to create a task force to monitor the implementation of the new round of excise tax increases this month.
The estimated rate impact on the pump price for unleaded premium gasoline would be around ₱1.01 per liter, while the estimated rate impact on the price of diesel is ₱1.65 per liter.
For 100-percent coal contracted power distribution utilities, the estimated rate impact is about ₱0.03 per KwH.
“The Department of Energy should intensify its monitoring against hoarding and profiteering…with the additional excise tax in the last tranche,” Gatchalian said.
Gatchalian also urged the DOE to scrutinize the inventory of coal plants.
The Department of Trade and Industry, meanwhile, should monitor the prices of goods in the market to ensure that unscrupulous businessmen will not take advantage and pass on the impact of higher oil prices to consumers as a result of the third tranche of the TRAIN law implementation.
READ: Big-time oil price hike in the offing