Gasoline, kerosene prices may roll back July 7
The prices of gasoline and kerosene products are expected roll back next week, while diesel price may not change.
Based on the calculations of oil companies, gasoline prices will likely go down by ₱0.70 to ₱0.90 per liter, while kerosene prices may be reduced by ₱0.30 to ₱0.40 per liter.
As had been the practice, industry players are anticipated to implement the adjustments in fuel commodities at their pumps by Tuesday, July 7.
By far, this is the first rollback happening in almost two months of price hikes since increased demand for petroleum products had ignited rally in prices in the world market.
Beyond the estimated rollbacks, consumers in some areas may still see upward adjustments in their purchase of petroleum products because the 10 percent import duty for crude and finished petroleum commodities are still being enforced by the other oil firms.
The pass-on of the cost impact of the import levy should have technically stopped on June 25 with the lapse of the Bayanihan to Heal As One Act, but given the inventories of the oil companies, this should continue until their imported products with higher taxes had been used up.
When the import duty-imposed products are fully sold, the Department of Energy (DOE) indicated that the pass-on of the ₱1.56 to ₱1.60 per liter price hikes will already cease.
The hike in the import tax of oil commodities, as prescribed under Executive Order 113, was resorted to as additional cash-raising activity for the State’s stimulus package at the height of the coronavirus pandemic.
There had been almost a month of delay in the implementation because of the oil firm’s product inventories; and that applies the same in the winding down of the pass-on of the cost impact of the oil import levy.