AS THE implementation of the second tranche of the Tax Reform for Acceleration and Inclusion (Train) Law for petroleum products took effect on Jan. 1, the Department of Energy (DOE) assured the public on Monday, Jan. 7, that it has taken measures to prevent abuse, and ensure a fair and effective implementation of the taxation scheme.
This as oil companies announced a round of oil price hikes due to the the rise in prices in the global market and not the implementation of the fuel excise taxes.
Fuel companies will implement a P.80 increase on gasoline, P.70 increase on diesel and P.40 on kerosene products on Tuesday, Jan. 8.
“The Department of Energy is mandated to ensure that the pricing of oil products is carried out within the parameters of the Train Law,” Energy Secretary Alfonso G. Cusi said, in a statement.
He added, “Over the process of the implementation of the first tranche of the Train Law, we have reached out to our stakeholders, especially the oil companies for their cooperation, and we will continue our coordination with them throughout the second tranche.” He stressed that the DOE will be more vigilant in monitoring the implementation of the second tranche of the Train Law for petroleum products.
“We will ensure the fuel stocks for 2018 will be utilized first and sold at pre-implementation prices,” he said.
As a result of its monitoring operations, the department has asked several gas stations to explain why they implemented fuel price hikes as early as Jan 2.
Under the second tranche of the Train Law’s implementation, an additional excise tax of P2 will be imposed per liter of diesel and gasoline, and P1 per kilogram on liquefied petroleum gas (LPG). There will also be an additional 12 percent value added tax, which totals to P2.24 for both diesel and gasoline, and P1.12 for LPG.
However, the DOE pointed out that the increase in pump prices of petroleum products resulting from the imposition of the second tranche of fuel excise taxes will still be lower. This is due to the offsetting effect of the rollbacks implemented in 2018 and January 2019. (PR)