Only last Tuesday, oil companies raised the price of diesel by P2.30 per liter due to the increased cost of importing crude, Ariel Casilao of party-list group Anakpawis said.
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Diesel costs P5 more due to TRAIN — lawmaker
Jess Diaz (The Philippine Star) - January 20, 2019 - 12:00am

MANILA, Philippines — The price of diesel, which is widely used in public and private transportation, is now P5.04 higher due to the controversial Tax Reform for Acceleration and Inclusion (TRAIN) law, Rep. Ariel Casilao of party-list group Anakpawis said yesterday.

He said the higher price does not include increases caused by fluctuations in the cost of crude oil in the world market.

Only last Tuesday, oil companies raised the price of diesel by P2.30 per liter due to the increased cost of importing crude, he said.

Thus, the total increase in the pump price of diesel amounted to P7.34, including the tax under TRAIN, Casilao stressed.

He pointed out that the tax is computed at P4.50, plus the 12-percent value added tax (VAT) of 54 centavos.

He urged senators and congressmen who authored the law to explain to the people the imposition of the fuel tax and the 12-percent VAT on it.

He lamented that administration officials continue to insist TRAIN has not resulted in higher prices of goods and services.

Before congressmen went on their month-long Christmas vacation last month, the committee on ways and means chaired by Nueva Ecija Rep. Estrellita Suansing decided to consolidate bills seeking to scrap fuel taxes under TRAIN.

 Meanwhile, motorists will see minimal oil price increases next week, to reflect the continued uptrend in the international market due to production cut by major oil producers.

“Diesel should go up by P0.30-0.40 and gasoline should go up by P0.10 per liter,” Unioil Philippines’ advisory read.

Department of Energy (DOE)-Oil Industry Management Bureau assistant director Rodela Romero, in a text message, again attributed the impending price hikes to the start of production cut by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC allies.

Based on DOE’s monitoring, the Joint Ministerial Monitoring Committee of the OPEC and non-OPEC coalition has called on its members to redouble their efforts to ensure the market remains balanced in 2019.

Major oil producers will be having a series of meetings to discuss options.

“They are expected to discuss whether to extend its 1.2 million barrels per day output cut agreement, which is set to expire at the end of June,” the DOE monitoring noted.

This will be the third consecutive week of higher oil prices and the second increase for the year. – With Danessa Rivera

OIL PRICE TAX REFORM FOR ACCELERATION AND INCLUSION LAW
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