Shell, PTT implement last tranche of fuel excise tax

MANILA, Philippines — Pilipinas Shell Petroleum Corp. (PSPC) and PTT Philippines Corp. have implemented the third and last tranche of fuel excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Law in some of their stations.

In a text message, DOE assistant secretary Leonido Pulido said both PSPC and PTT have implemented TRAIN.

“Shell has implemented (higher TRAIN taxes) in 267 stations while PTT has implemented higher TRAIN taxes in] nine [stations],” he said.

As for the other oil firms, Pulido said the agency is “still validating” their compliance.

Last Jan. 1, the additional P1.50 per liter excise tax on fuel took effect as part of the TRAIN Law.

However, the DOE—through the Oil Industry Management Bureau (OIMB) – reminded oil companies not to impose the additional excise tax by Jan. 1.

This as the new excise tax rates do not apply to the old stocks of petroleum products and, therefore, should not be charged by retailers to consumers.

Oil companies have a minimum inventory of 15 days while stocks for household liquefied petroleum gas (LPG) have a minimum inventory requirement of seven days.

To ensure transparency and avoid profiteering, the DOE has directed oil companies to submit their inventories to be able to monitor how much stock is left in their books.

The oil companies were also required to post what products would be charged with excise tax and when it would be implemented.

The DOE had conducted random checks on oil companies from the refinery level down to the retail level.

The first tranche of the increase, which took effect in 2018, increased excise tax on gasoline to P7 per liter from P4.35, while new tax rates of P2.50 per liter would be levied on diesel, P3 on kerosene and P1 per kilogram on LPG.

Last year, fuel excise tax on gasoline increased to P9 per liter, diesel to P4.50 per liter, kerosene to P4 per liter and LPG to P2 per kilogram.