DOE to review its position on baseoil tariff

It’s back to square one for Senate Bill 2267 which proposes to increase baseoil tariff to as much as 20 percent.

"We will restudy our position," said Energy Secretary Jose Isidro Camacho. "I think this is not as immediate issue" as the passage of the Power Sector Reform Bill.

Under SB 2267, the current three percent tariff on imported lubricants, baseoils and asphalts will be increased to 15 percent (for ASEAN origin) and to 20 percent (for other countries of origin). The tariff will stay at three percent for locally-produced products.

In separate position papers, Petron Corp. and Total Petroleum Phils. Corp. opposed SB 2267 because there is only one local source of baseoil, Pilipinas Shell’s Pililla Baseoil Refiner.

"We are concerned the increase in tariff would increase the prices of lubricants and negatively impact on vital industries such as transport, power generating, manufacturing and agri-aqua sectors," Petron said.

Total Petroleum estimated the passage of SB 2267 would increase taxes for lubricants by 600 percent, resulting in a P5 to P7 hike per liter of imported finished lubricants. – Donnabelle Gatdula