Oil firms hike prices today
Credit to Author: Tempo Desk| Date: Mon, 07 Jan 2019 16:01:45 +0000
A GASOLINE station attendant attends to customers refueling in a gasoline station on Commonwealth Ave., Quezon City. (Alvin Kasiban)
A sharp rise in global crude prices last Thursday and Friday’s trading had caused an uptick in Philippine pump prices by as much as P0.80 per liter for gasoline and P0.70 per liter for diesel today – much higher than the earlier calculations of the industry players.
Kerosene, which is generally used in households as well as in industries, will go up by P0.40 per liter, according to the pricing notices sent yesterday by the oil companies.
Oil firms that have advised price hikes were oil majors Pilipinas Shell Petroleum Corp. and Chevron which carries the Caltex brand; then independent player Petro Gazz – effective 12:01 a.m. and 6 a.m. today.
The rest of the industry players are anticipated to follow which is the usual routine of price adjustments in the deregulated domestic oil industry.
While monitoring this round of price adjustments, the Department of Energy is also closely monitoring oil companies that have increased excise taxes on petroleum products being sold in their pumps – referencing such on the mandate of the second tranche excise taxes of the Tax Reform for Acceleration and Inclusion Law.
According to Energy Undersecretary Felix William Fuentebella, roughly 300 gasoline stations have increases excise taxes by additional P2 per liter for gasoline and diesel – out of the more than 8,000 stations being monitored by the department.
Current figures released by the Energy department showed 268 stations are from leading oil firm Petron Corp.; and 32 retail outlets from independent player Flying V.
Fuentebella explained that they are looking at two aspects when it comes to the monitoring of specific petroleum retail network: First is the size of the gasoline station so they can assess its storage capacity; and the second is the demand or the extent of withdrawal from that station based on the purchases of customers, “so we can gauge when its inventory will be used up.”
The department, he said, is expecting full pass-on of the higher excise taxes between Jan. 15 to Feb. 1 this year.
The second batch of excise tax adjustments on petroleum products warrants price hikes of P2 per liter for gasoline and diesel products; and P1 per kilogram for Liquefied Petroleum Gas – plus corresponding Value-Added Taxes.
Essentially, that will result in total adjustment of P2.24 per liter in taxes for gasoline and diesel; and P1.12 per kilogram for LPG cooking fuel. (Myrna M. Velasco)