Diesel prices up by P1.15/liter; kerosene by P1.05/liter

Published December 23, 2019, 12:00 AM

by manilabulletin_admin

By Myrna Velasco 

It will be a financially draining Christmas for motorists using diesel for their vehicles as the price of this commodity will go up by P1.15 per liter today, December 24, which is the eve of the most important holiday of the season.

A gasoline worker puts gas to a gas tank of a car at a gas station in Qeuzon City ysetrday. Prices of oil increased by P1.40 per liter, regular gas by P1 per liter, diesel by P0.55 per liter and kerosene by P0.50 per liter following the decision of the Organization of Petroleum Exporting Countries or OPEC to cut oil production due to a weaker-than-expected demand. Photo by: MArk Balmores
A gasoline worker puts gas to a gas tank of a car at a gas station in Quezon City. (MARK BALMORES / FILE PHOTO / MANILA BULLETIN)

In addition, the prices of kerosene which is another socially sensitive product, will increase by P1.05 per liter on the same day. Gasoline prices will not change.

As of press time, the oil companies that already sent notices on their pricing adjustments were Pilipinas Shell Petroleum Corporation; PetroGazz; Cleanfuel, Seaoil, and PTT Philippines. The rest of the industry players are anticipated to follow.

By January, consumers are also anticipated to bear the brunt of the last round of increases in excise taxes for petroleum products – due to the Tax Reform for Acceleration and Inclusion (TRAIN) Act of the Duterte administration.

Energy Secretary Alfonso G. Cusi has indicated that the manner of implementation of the last tranche of excise taxes would be the same as last year –the oil companies would have to sell all existing inventories first before imposing the higher taxes on new products to be shipped at their terminals and subsequently sold at the pumps.

With that rule, the DOE is antici­pating that price adjustments due to higher taxes will be implemented between mid-January until early February next year.

Beyond the inventories, petro­leum products will be levied with higher excise taxes again starting January 2020 – additional P1 per liter for gasoline; P1.50 per liter for diesel; P1 per liter for liquefied pe­troleum gas (LPG); and P1 per liter for kerosene.

By then, the total excise taxes for gasoline products would already be at P10 per liter; P6 per liter for diesel; P3 per liter for LPG; and P5 per liter for kerosene.

Prior to the end of the year, the DOE is requiring the oil companies to submit a report on the level of their inventories ending December 31, 2019. That will be the gauge as to when they can sell new products with higher excise taxes.

The increased excise taxes for oil commodities are revenue-generating measure for the state to raise much-needed hard cash that could help finance the line-up of infrastructure projects for the country.

Aside from the jacked up excise taxes, the Department of Finance (DOF) is likewise targeting to fetch up to P20 billion worth of additional revenues from its fuel marking policy for the downstream oil sector.