MANILA, Philippines – Senator Sherwin Gatchalian has called on the Department of Energy (DOE) to create a task force that will closely monitor the implementation of the new round of increases in excise tax on fuel.
Gatchalian made the call as the third and last tranche of tax hikes on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect on Wednesday, January 1, 2020.
He said that under the TRAIN Law, the estimated rate impact on pump price for unleaded premium gasoline would be around ₱1.01 per liter, while the estimated rate impact of the third tranche of the excise tax on diesel price is ₱1.65 per liter.
For 100 percent coal contracted power distribution utilities, the estimated rate impact is around ₱0.03 per kilowatt hour.
The senator said the creation of the task force is aimed to protect consumers from premature price increases and profiteering.
“Kailangan paigtinging mabuti ng Department of Energy (DOE) ang pagbabantay laban sa hoarding at profiteering sa bansa ngayong nakaamba ang dagdag na excise tax sa huling pagkakataon,” Gatchalian said in a statement.
“Huwag na nating hayaan ang ilang mapagsamantalang retailers na ibenta sa mataas na halaga ang kanilang mga lumang imbentaryong produkto, gayong nabili nila ito bago pa man maimplementa ang third tranche ng excise tax sa fuel,” he added.
Gatchalian noted that local oil companies maintain a minimum inventory equivalent to 15-day supply of petroleum products as provided under DOE’s Department Circular No. 2003-01-001 or the Implementing Guidelines for the Minimum Inventory Requirements of Petroleum of Oil Companies and Bulk Suppliers.
The DOE earlier said the new round of fuel tax hikes are only applicable to new stocks imported beginning January 1, 2020. It also advised oil firms to deplete old stocks before implementing new price schemes reflecting the new levies.
Gatchalian also called on the Department of Trade and Industry (DTI) to monitor the prices of goods in the market in order to ensure that unscrupulous businessmen will not take advantage and pass on the impact of higher oil prices to consumers as a result of the third tranche of the TRAIN law implementation.
“Mabigat na sa bulsa ng bawat isa ang pagpataw ng excise tax sa krudo. Sana naman ay huwag na natin dagdagan ang pasanin ng taong bayan sa pamamagitan ng hindi makatarungang pagtaas ng presyo ng mga pangunahing bilihin,” he said.
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