‘Latest oil price hike not yet due to TRAIN’

MANILA, Philippines — Oil companies are increasing pump prices today due to higher prices in the world market and not yet because of the second tranche of excise tax on fuel under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Gasoline prices were raised by P0.80 per liter, diesel by P0.70 and kerosene by P0.40 per liter.

The increase comes after 11 consecutive weeks of price reduction for diesel and kerosene, and three weeks for gasoline.

In an advisory, Caltex Philippines said its price adjustments would take effect at 12:01 a.m. today.

Petro Gazz, Phoenix Petroleum Philippines Inc., Pilipinas Shell Petroleum Corp., PTT Philippines Corp., Seaoil Philippines Inc. and UniOil Petroleum Philippines Inc. said they would increase pump prices starting at 6 a.m.

“This reflects changes in the prices of petroleum products in the world market and does not include additional taxes under the TRAIN law,” Phoenix said.

Eastern Petroleum, Flying V, Petron Corp., and Total Philippines Corp. have yet to announce their price adjustments.

The uptrend in the international market was driven by talks between Saudi Arabia and the Organization of Petroleum Exporting Countries about possible production cuts, Energy Undersecretary Felix William Fuentebella said.

 “They are basically talking about production cut, coupled by the actual reduction in oil production by Saudi Arabia,” he said.

The Department of Energy reminded oil players to properly implement the second tranche of excise tax on fuel amid the fuel price hike.

The agency assured the public that it has taken measures to prevent abuse and ensure fair implementation of the tax scheme.

Fuentebella said they have ordered several gas stations to explain why they implemented fuel price hikes as early as Jan. 2.

Out of 8,630 retail stations nationwide, 300 gas stations implemented the second tranche of excise tax on oil, he said.

Of the 300, 268 are Petron stations and 32 are Flying V outlets. These stations will be issued show cause orders to explain why they included the new round of excise tax in their prices.

“Not all gas stations will adjust prices,” Fuentebella said. “We expect a majority of the oil firms to implement the second tranche of excise tax on fuel starting this month to February.”

Under the second tranche of TRAIN law’s implementation, an additional excise tax of P2 per liter will be imposed on diesel and gasoline, and P1 per kilo on household liquefied petroleum gas (LPG.)

There will also be an additional 12 percent value added tax, or a total of P2.24 for diesel and gasoline, and P1.12 for LPG.

Address high prices

Meanwhile, Sen. Bam Aquino urged the government to address the increase in the prices of goods and fuel products.

He said the Duterte administration should be sensitive to the plight of consumers and poor Filipinos, who are expected to carry the burden of high prices of goods due to the TRAIN law.

Aquino was among the four senators who voted against the ratification of the TRAIN law.

He issued the appeal amid the reported increase in prices of vegetables and other agricultural products after Tropical Depression Usman devastated Bicol and the Visayas. – With Cecille Suerte Felipe