TAGUIG CITY – Department of Energy (DOE) Secretary Alfonso G. Cusi directed the DOE-Oil Industry Management Bureau (OIMB) to ensure the proper implementation of the additional 10% tax on crude and petroleum products, as provided in Executive order (EO) No. 113.
“Upon the release of EO 113, our Oil Industry Management Bureau immediately met with industry stakeholders to discuss the way forward, including their strict compliance with the EO’s guidelines,” Secretary Cusi said.
President Rodrigo R. Duterte signed EO 113 on 2 May 2020, temporarily imposing an additional 10% import tax on petroleum products to help augment government funding in the fight against the Coronavirus Disease-2019 (COVID-19).
However, said additional tax is expected to be reflected in price adjustments only after oil companies have exhausted existing inventories that have been purchased prior to the issuance of EO 113. Projections based on their inventory reports indicated that the added costs might be included beginning the third week of June (14-20 June 2020).
Currently, Shell Philippines has reported that 644 of their liquid fuel retail outlets have implemented the tariff adjustment for diesel products only, with this week’s adjustments generally reflecting upward developments in the global oil markets.
The DOE would like to note that even with the additional PhP 1.50-PhP 1.60/liter tariff range, prices of petroleum products continue to remain low. Cumulative rollbacks from January 2020 to date stand at PhP 6.72/liter for gasoline, PhP 9.99/liter for diesel, and PhP 13.69/liter for kerosene.
“Protecting our consumers is always our top priority. We will not allow any unfair practice to derail consumer interests, especially given the challenges we continue to face in the midst of the pandemic,” stressed the Energy Chief.
Under EO 113, the temporary imposition of additional tariffs will immediately revert to 0% upon the certification of the DOE that a trigger price has been reached (when Dubai Crude reaches US$64/bbl), or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first
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