PRESIDENT Rodrigo Duterte has temporarily hiked tariffs on imported crude oil and refined petroleum products by 10 percent to boost the government’s funds in addressing the Covid-19 situation in the country.
“There is an urgent need to augment the government’s resources to sufficiently finance the government’s programs and measures to mitigate the effects of the Covid-19 situation, and launch the country towards recovery and rehabilitation,” the Executive Order (EO) released on Monday, May 4, 2020, said.
Duterte signed EO 113, Saturday, May 2. The additional tariff is on top of the existing Most Favored Nation and preferential import duties.
“The Department of Budget and Management is directed to study, propose and/or take such measures as may be appropriate, to ensure that the proceeds derived from the temporary additional import duty shall be used to fund measures that address and respond to the effects of the Covid-19 situation, including social amelioration programs and such other forms of assistance for all those affected,” the EO stated.
The EO said “the modified rates of import duty will immediately revert to zero percent as international oil prices increase, based on trigger prices indexed to oil prices in the world market, upon a certification by the Department of Energy.”
The EO will remain in effect until the Bayanihan to Heal as One Act ceases to take effect.
Oil price crash
Meanwhile, gasoline and diesel pump prices in the Philippines have been on a downtrend since the start of the year, mirroring the global oil slump.
According to US-based research firm globalpetrolprices.com, gasoline in the country retailed at P40.20 (around US79 cents) a liter as of April 27, 2020, falling 22 percent from P51.50 (US99 cents) a liter on Jan. 20.
Diesel price also plunged 33 percent to P29.93 per liter from P44.70 per liter.
In fact, diesel is cheaper than some bottled water brands sold in convenience stores, which usually sell for as much as P30 per liter.
But motorists aren’t getting the full joy of the crude’s slump as quarantine measures due to the novel coronavirus crisis have kept them at home and their cars off the streets.
Gasoline retail price averaged P46.71 per liter in the past three months, lower than the global average of P63.19.
The average retail price of diesel in the country also hit P36.89 per liter, still lower than the P57.41 world average.
Government employee Shirelyn Villamor said she has taken advantage of the cheap fuel nowadays.
“Before I preferred to take the public transportation because fuel was expensive. But now, I could bring my car to work more often,” she told SunStar Cebu.
“I’m usually on full tank because fuel is more affordable now. If only I could stock on them I would because price might increase in the future,” she said.
However, Villamor isn’t out much these days due to the enhanced community quarantine in Cebu. She usually now works from home although there are days when she has to report to the office.
The oil slump is a boon to countries like the Philippines, which imports most of its fuel needs. It is seen to bolster consumption as transport costs will be lower while inflation will also see less pressure. (with KOC)