Another oil price hike implemented this week

MANILA, Philippines — The Department of Energy (DOE) expects oil companies to implement the additional 10 percent tax on crude and petroleum products starting this week.

The DOE estimates that the additional 10 percent tax on crude and petroleum products, as provided in Executive Order 113, amounts to P1.50 to P1.60 per liter.

EO 113, signed by President Duterte last May 2, temporarily imposes an additional 10 percent import tax on petroleum products to help augment government funding in the fight against the coronavirus disease 2019 (COVID-19).

The DOE said additional tax is expected to be reflected in price adjustments only after oil companies have exhausted existing inventories that have been purchased prior to the issuance of EO 113.

Projections based on their inventory reports indicated that the added costs might be included beginning third week of June, or from June 14 to 20, the agency said.

This would be on top of the fuel price hike implemented by oil companies on Tuesday.

Gasoline prices were increased by P1.25 per liter, diesel by P1.10 and kerosene by P0.75 per liter.

So far, Pilipinas Shell Petroleum Corp. reported to the DOE that 644 Shell retail stations have implemented the tariff adjustment for diesel products only.

But despite the additional tariff, the DOE said prices of petroleum products continue to remain low, with cumulative rollbacks from January to date stand at P6.72 per liter for gasoline, P9.99 per liter for diesel and P13.69 per liter for kerosene.

Energy Secretary Alfonso Cusi directed the DOE-Oil Industry Management Bureau to ensure the proper implementation of the additional 10 percent tax on crude and petroleum products.

“Upon the release of EO 113, our Oil Industry Management Bureau immediately met with industry stakeholders to discuss the way forward, including their strict compliance with the EO’s guidelines,” Cusi said.

“Protecting our consumers is always our top priority. We will not allow any unfair practice to derail consumer interests, especially given the challenges we continue to face in the midst of the pandemic,” he said.

Under EO 113, the temporary imposition of additional tariffs will immediately revert to zero upon certification of the DOE that a trigger price has been reached – when Dubai Crude reaches $64 per barrel, or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first.