Fuel prices to go up on Jan. 2, despite gov’t warning

INQUIRER FILE PHOTO

Oil firms will raise pump prices for diesel and kerosene for the third week in a row on Tuesday due to the usual movements in international prices even as motorists anticipated hikes that would reflect a new tax regime.

The pump price of gasoline will also go up, canceling the effect of a price cut implemented last week.

According to separate advisories issued by the Department of Finance (DOF) and the Department of Energy (DOE), there should be no oil price hikes so soon despite the implementation of excise tax and value added tax (VAT) for petroleum products starting on Jan. 1, 2018, under the Tax Reform for Acceleration and Inclusion (Train) Act,

The DOF and the DOE reminded the public that the new excise tax rates do not apply to the old stocks of petroleum products.

“The OIMB [Oil Industry Management Bureau] 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 in a statement.

“The increase is not expected to take effect immediately… as it takes a few days for the 2017 oil stock to be used up,” the DOF said. “This is because the excise is paid at the port of importation or refinery. Oil [price] increase done by the companies [purportedly due to the excise tax] on Jan. 1 might be considered profiteering.”

Starting 6 a.m. Tuesday morning, the price of diesel will go up by 65 centavos per liter while the price of gasoline will go up by 20 centavos per liter.

As of this posting on Monday, four companies have announced price changes – PTT Philippines Corp., Phoenix Petroleum Philippines Inc., Petron Corp., and Pilipinas Shell Petroleum Corp.

Other companies are expected to follow suit.

Petron and Shell also raised the price of kerosene by 75 centavos per liter.

“These reflect price movements in the international market,” Petron said in a statement. “[There will be] no movement for kerosene in areas under a state of calamity.”

Last week, prices of diesel went up by 15 centavos per liter while those of kerosene increased by 10 centavos per liter. However, prices of gasoline went down by 20 centavos per liter.

Based on DOE data, the price of diesel in Metro Manila ranges from P33.00 to P38.10 per liter.

The price of gasoline with an octane rating of 95 now ranges from P43.05 to P52.91 per liter, while the price of kerosene ranges from P37.86 to P47.50 per liter. /atm