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Saturday, November 01, 2008
3% oil tariff to push through
MANILA -- The re-imposition of the three percent tariff on oil would proceed on November 1 after prices of oil in the world market have gone down, an official said.
"It's effective November 1. It is a policy direction that we have to go back to three percent because the triggers are no longer there. Now what that means for us is that we're looking at a revenue neutral situation...how will this affect the prices," Finance Secretary Margarito Teves said.
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Teves said the Department of Finance (DOF) would still be doing its computations with the energy department to determine the impact of the re-imposition of the tariff amid concerns that it would neutralize the impact of the recent rollback of prices.
The prices of oil in the world market had already gone down to US$60 per barrel level.
The government ordered the temporary lifting of tariff on oil in June after the prices of crude in the world market breached the US$135 per barrel level.
Under the present guidelines, the trigger point for a three percent to two percent tariff cut is US$83 per barrel of Dubai crude and US$105 per barrel of diesel at the Mean of Platts Singapore (Mops).
For the two percent to one percent tariff cut, the trigger point is US$92 per barrel for Dubai and US$110 for Mops-diesel, while for the zero tariff on oil, the trigger point is US$103 per barrel for Dubai and US$115 per barrel for Mops-diesel.
Meanwhile, Presidential Management Staff director general Cerge Remonde welcomed the commitment of the Association of Liquefied Petroleum Gas dealers in the country to lower rates starting next week. He also welcomed the decision of transport groups to lower the minimum fare soon.
"It is social responsibility of the highest order. In these trying times and in the spirit of Christmas fast approaching, we must work together instead of fight each other," he said. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Zamboanga. (November 1, 2008 issue)
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