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Oil prices still rising; tax factored in

Pump prices will likely go up by as much as P0.50 per liter next week to reflect the movement of prices in the world market, an oil distributor said in its weekly forecast.

READ: Oil prices up again; Gas by P1.05

“Expect fuel prices to go up next week (June 30to July 6). Diesel should increase by P0.30 to P0.40 per liter. Gasoline should increase by P0.40 to P0.50 per liter,” Unioil Philippines said.

But analysts expressed concern over the increase in coronavirus cases in the United States and the new infections in China, which they said could hamper demand.

The total year-to-date adjustments in pump prices stand at a net decrease of P5.67 per liter of gasoline, P9.14 per liter of diesel and P13.39 per liter of kerosene.

On June 23, the oil companies raised the price of gasoline by P1.05 per liter, diesel by P0.85 per liter and kerosene by P0.30 per liter.

Meanwhile, some oil companies have started implementing the additional 10-percent tax on crude and petroleum products as provided in Executive Order 113.

Malacañang issued the EO on May 2, imposing an additional 10-percent import tax on petroleum products to boost government resources to finance programs to ease the effects of the COVID-19 pandemic.

Petron Corp., Pilipinas Shell Petroleum Corp., Phoenix Petroleum Philippines have started charging the higher import duty.

Energy Secretary Alfonso Cusi earlier ordered the Oil Industry Management Bureau to ensure the implementation of the additional 10-percent duty.

The Energy department says the additional tax is expected to be reflected in the price adjustments only after the oil companies have exhausted their inventories that were purchased before EO 113 was issued.

Meanwhile, sources said Pilipinas Shell had asked the department to extend its one-month refinery shutdown. The company temporarily shut down its 110,000-barrels- per-day refinery in Batangas starting May 24 due to low demand.

Petron also temporarily shut down its 180,000-barrels- per-day refinery in Bataan for maintenance in early May.

READ: Unioil sets price hike: P0.80

READ: DOE still keen on West Philippine Sea oil exploration

Topics: Oil prices , Unioil Philippines , Energy Secretary Alfonso Cusi , COVID-19 pandemic
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