Close  

Tax hike ‘unlikely’ the cause of Petron’s weak H1 income, says DOF

By: - Reporter / @daxinq
/ 05:05 AM August 17, 2019

The Department of Finance (DOF) yesterday said it was unlikely that the decline in the first half earnings of the country’s largest petroleum refiner and distributor was caused by the fuel tax hike imposed by the government last year.

In a statement, Finance Undersecretary Gil Beltran said it was “highly unlikely” that the increase in fuel excise under the Tax Reform for Acceleration and Inclusion (TRAIN) Act led to a decline in Petron Corp.’s earnings for the first semester of 2019.

ADVERTISEMENT

Beltran noted that other petroleum firms reported improved income performance in the same period.

Petron earlier said its first half earnings fell by 72 percent, adding that the price increases resulting from the TRAIN law’s implementation led to a decrease in its domestic fuel sales.

“We looked at their financials and it seems highly unlikely,” Beltran said, saying it was “misleading” for the firm to blame the tax hikes for the decrease in sales. “Shell reported that despite lower profits in the first half of 2019 compared to the same period in 2018, they saw higher retail volume growth across all business segments in the second quarter, which is the opposite of the Petron story.”

“In addition, Petron’s message that higher prices led to a decline in sales is inconsistent with its history,” he added.

The official said that, despite the rise in gasoline and diesel retail prices in the first quarter of 2012, Petron’s revenue still rose by 17 percent, or P10.6 billion, compared to the previous year. In the first half of 2012, when oil price was at its highest, Petron’s income grew by 43 percent.

“Perhaps Petron should look inward to understand the true cause,” Beltran said, noting that the firm had also reported a 78-percent hike in indirect expenses in the first quarter of 2019, “which suggests lower efficiency resulting in the income decrease.”

“Blaming TRAIN for their income drop is unwarranted,” Beltran said.

ADVERTISEMENT
Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Department of Finance, DoF, Petron
For feedback, complaints, or inquiries, contact us.
globalnation

‘False pride’: Palace memo on foreign aid, loans hit

September 22, 2019 05:15 AM

newsinfo

Polio blame game: PAO chief lashes back at ‘trolls’

September 22, 2019 05:10 AM

business

Ramon Ang rallies hunger champions

September 22, 2019 05:10 AM

lifestyle

It’s still paradise in Coron, despite the rains

September 22, 2019 05:10 AM



© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.