The Department of Energy (DOE) said the suspension of existing excise taxes on oil products is possible if imported fuel prices amount to more than $80 per barrel for three consecutive months.
“Yong tatlong buwan consecutively, ia-average po ‘yon, at kapag ito ay tumawid ng $80 per barrel, isususpinde na ng DOF (Department of Finance) ‘yong excise tax,” DOE Undersecretary Donato Marcos said in a Thursday morning interview with Radyo Inquirer.
Marcos said that the suspension, as mandated by the Tax Reform for Acceleration and Inclusion (TRAIN) law, would only involve succeeding taxes, and not the value added tax (VAT) and the separate P2.50 excise tax already implemented since January 2018.
This means that if the DOF suspends the implementation of excise taxes for fuel, the additional P4.00 due for 2019 would not push through.
However, Marcos raised the possibility of suspending all additional taxes imposed by the TRAIN law.
“Pero malawak po kasi ‘yong isnasaad sa probisyon, palagay ko po pwede ring isuspinde tong kasalukuyang (buwis),” Marcos said.
Marcos noted that the price of Dubai crude oil at the world market, which the Philippine imports, is at $78.87. According to the DOE, the country currently is dependent on imported oil by 70 to 80 percent.
Marcos added that oil prices remain high even if some companies have onsite oil refineries, because locally refined oil is sometimes more costly than imported oil products.
“Kasi po minsan dumarating sa punto na ‘yong crude oil, kapag ni-refine mo dito sa atin, mas mahal pa po ‘yong finished product,” he said.
Oil price monitoring
Marcos said the DOE has not recorded any violations of oil price hike regulations in Metro Manila. However, he added that the DOE is currently responding to concerns regarding extremely high prices in provinces such as Baguio and Palawan.
“Ngayon pong araw na ito, papunta roon ‘yong team, parallel dyan sa meron din po sa Manila na mag-iinspeksyon, para masigurong hindi maabuso ‘yong oil price hike,” Marcos said.
Marcos said sanctions can be imposed on gasoline stations who would abuse the oil price hike.
“Pwede pong i-padlock po ‘yon (abusive stations), ipa-padlock po natin ‘yong pumping stations nila,” he added. /muf