Oil firms cut prices 20¢-50¢
Local oil companies have slashed the prices of their petroleum products effective Tuesday, to reflect the latest movements in the global oil market.
Independent player Eastern Petroleum cut the prices of gasoline by 50 centavos a liter and of diesel and kerosene by 25 centavos a liter, while Phoenix Petroleum Philippines lowered its prices of gasoline by 35 centavos a liter and of diesel by 20 centavos a liter.
Both Chevron Philippines and Seaoil Philippines implemented a rollback of 35 centavos a liter for premium unleaded gasoline, 20 centavos a liter for diesel and regular gasoline, and 50 centavos a liter for kerosene.
Shell announced it was rolling back its prices of unleaded premium gasoline and kerosene by 50 centavos a liter and regular gasoline and diesel by 20 centavos a liter effective 12:01 a.m. Tuesday.
Other oil companies are expected to follow suit.
Prior to Tuesday’s rollback, diesel products were retailing between P41.70 to P44.30 a liter while gasoline sold for as low as P52.10 a liter to as high as P58.67 a liter. As of Sept. 6, the year-to-date net increase in gasoline stood at P7.45 a liter and diesel, P5.10 a liter.
Meanwhile, umbrella group Bagong Alyansang Makabayan on Monday called on the government to scrap the value-added tax (VAT) on petroleum products, a move, it claimed, that would significantly lower oil prices.
In a statement issued on Monday, Bayan secretary general Renato M. Reyes Jr. noted that there were various proposals in Congress calling for the lowering of the VAT on oil up to outright scrapping it.
“It is unconscionable that the Aquino government continues to collect this tax despite the people’s misery with rising oil prices,” Reyes said.
Citing data from the Congressional Policy and Budget Research Department, the VAT on oil revenues is expected to reach P70 billion this year, or a windfall of P26 billion, because of constantly increasing oil prices. This is significantly bigger than last year’s VAT on oil collection of P45 billion, Bayan said.
