More gas stations impose higher fuel excise taxes

Credit to Author: JORDEENE B. LAGARE| Date: Mon, 07 Jan 2019 16:23:08 +0000

Over 260 retail stations have already applied the second round of fuel excise taxes this year, the Department of Energy (DoE) revealed.

In a press briefing, Energy Undersecretary Felix William Fuentebella reported that 268 retail stations had already implemented higher fuel excise taxes as of Jan. 5, 2019 (Saturday).

“Out of the 8,600 gasoline stations that we are monitoring, there are already 268 stations that have reported to the Department of Energy that they are already implementing on the retail level [the second round of fuel excise taxes],” Fuentebella told reporters, citing reports from industry players.

Of the total number, 231 stations, including 20 in Metro Manila, are located in Luzon , 34 in Visayas, and three in Mindanao.

Fuentebella also bared that 32 stations of Flying V, including six in Metro Manila, have levied additional excise tax on fuel products.

The majority of gasoline stations are expected to impose higher fuel excise taxes between January 15 and February 1. This is because the circulars issued by the DoE mandate oil-based generation companies, oil companies and bulk suppliers, and refiners to maintain a minimum 15 to 30 day inventory or in-country stock of petroleum products and fuels.

Last week, the DoE said six Petron stations were asked to explain the rationale for their imposition of the second tranche of fuel excise taxes as early as January 2 this year.

The DoE issued show cause orders and deployed inspection teams to the retail stations of Petron Corp. in the following areas: San Juan, Concepcion, Tarlac; Brgy. Mangan Vaca, Subic Town,
Zambales; McArthur Highway, San Matias, Sto Tomas, Pampanga; McArthur Highway Dakila, Malolos City, Bulacan; Olongapo-Gapan Road, Sta. Ana, Pampanga; and JASA Brgy. Prado Siongco, Lubao, Pampanga.

Fuentabella said they have to consider the factors such as fast turnover and storage capability. “We are asking them to explain,” he said.

Sought for comment, Petron said the listed company is one with the DoE in ensuring fair and correct implementation of the second tranche of fuel excise tax under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (Train) law.

“We reported to DOE the list of Petron stations which implemented the additional excise taxes on January 2. These included stations with low storage capacity which reflected the new prices after their old inventories were depleted,” it added.

Signed by President Duterte in December 2017, the tax reform law imposed an excise tax of P2.50 per liter for diesel and P7 per liter for gasoline. By January 2019, the excise tax on diesel and gasoline will increase by P4.50 per liter and P9 per liter, respectively.

Energy Secretary Alfonso Cusi earlier reminded firms that the second tranche of fuel excise taxes which took effect this month should not be imposed on petroleum stocks purchased in 2018.

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