31 December 2017

DOE CONSUMER ADVISORY

(Taguig City). At the eve of the new year, the Department of Energy (DOE) clarifies various topics concerning the oil industry.

A. Implementation of TRAIN for Petroleum Products

The implementation of excise tax and value added tax (VAT) for petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) is effective on January 1, 2018.

The DOE, through the Oil Industry Management Bureau (OIMB) and in coordination with the Department of Finance (DOF), is reminding the public that the new Excise Tax rates do NOT apply to the old stocks of petroleum products. Consequently, the retailers should not charge the new Excise Tax to the consumers.

“The OIMB has issued an advisory to petroleum products stakeholders NOT to levy new Excise Tax rates on old stocks, considering that Excise Taxes are levied upon importation and not at the point of sale to the consumers,” Assistant Secretary Leonido Pulido III clarified.

For VAT, the new rates under the TRAIN that are applicable to consumers become effective on January 1, 2018.

B. Oil Price Movement for Tuesday

In addition to this clarification, the DOE stringently monitors oil trading in the international market and analyzes its effects on the domestic prices of petroleum products as mandated by the Oil Deregulation Law of 1998.

Pursuant thereto, the DOE observed that last week’s international oil trading may affect the domestic prices of gasoline, diesel and kerosene as follows:

• Gasoline prices may increase by around P0.15 per liter;

• Diesel may increase by around P0.60 per liter; and,

• Kerosene may increase by around P0.55 per liter.

Adjustments on petroleum products are implemented every Tuesday of the week. Please note, however, that these findings may still be affected by the Friday trading activities which will be accessed on Monday.

C. Price Freeze for Kerosene Household LPG for Calamity Areas

The DOE reiterates that upon a declaration of a State of Calamity, the DOE is implementing a ‘price freeze’ on kerosene and household liquefied petroleum gas (LPG).

For its implementation, the DOE reminds the public of the following:

• The price freeze is applicable for 15 days, commencing one day after the declaration;

• “Household LPG” refers to 11 kilograms and below of LPG in containers;

• Price movements for kerosene are implemented every Tuesday of the week; and,

• Price movements for LPG are implemented at the beginning of each month.

Through the OIMB and the agency’s Field Offices, the DOE is closely coordinating with the oil industry players in the implementation of the Republic Act (RA) 7581, as amended by RA 10623, which imposes a "price freeze" on these basic energy products being sold in the areas affected by the calamity.

D. General Reminder

The DOE calls on the public to be vigilant and to report any violation to info@doe.gov.ph or to Consumer Welfare and Promotion Office at tel. no. 479-2900 loc. 329.

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