MANILA -- Petroleum companies increased gasoline prices by 20 centavos per liter and diesel pump prices by 65 centavos starting Tuesday, January 2.
Shell, Seaoil, PTT Philippines, and Phoenix Petroleum made the adjustments at 6 a.m. today.
The Department of Energy (DOE) advised the public that the implementation of value added tax (VAT) for petroleum products under the Tax Reform Acceleration and Inclusion (Train) will take effect on January 1, 2018.
But the DOE, through the Oil Industry Management Bureau (OIMB) and in coordination with the Department of Finance (DOF), reminded the public that the new excise tax rates do not apply to the old stocks of petroleum products and cautions retailers not to charge the new excise tax on the consumers.
“The OIMB has issued an advisory to petroleum products stakeholders not to levy new excise tax rates on old stocks, considering that excise taxes are levied upon importation and not at the point of sale to the consumers,” Assistant Secretary Leonido Pulido III clarified.
Under the Train, the new rates that are applicable to consumers include pump price of gasoline, diesel, and kerosene for newly acquired fuel stocks.
The DOE also reminded the public that the price freeze for household liquefied petroleum gas (LPG) weighing 11-kilograms (kg) and under and kerosene are automatically implemented for a period of 15-days from the time an area is declared under a state of calamity.
Through the OIMB and the agency’s field offices, the DOE is closely coordinating with the oil industry players in the implementation of the Republic Act (RA) 7581, as amended by RA 10623, which imposes a "price freeze" on these basic energy products being sold in the areas affected by the calamity.
In addition to this clarification, the DOE monitors oil trading in the international market and analyzes its effects on the domestic prices of petroleum products as mandated by the Oil Deregulation Law of 1998.
The DOE further adviced that adjustments on petroleum products are implemented every Tuesday of the week, based on the results of Friday trading activities that are accessed on the following Monday.
The DOE calls on the public to be vigilant and to report any violation to the DOE's Consumer Welfare and Promotion Office at tel. no. 479-2900 loc. 329. (PNA)