MANILA - Pump prices should not increase in the first 15 days of the year due to higher excise taxes, as oil firms use up old inventory, the Department of Energy said Wednesday.
Under the first package of tax reform that took effect on Jan. 1, a P2.50 per liter tax will be imposed on diesel while the duty on gasoline was raised to P7 from P4.35.
Energy undersecretary Wimpy Fuentebella said the excise tax on liquid petroleum products should not be imposed for 15 days from the effectivity of the law.
The window was shorter for LPG or cooking gas at 7 days, Fuentebella said.
Fuentebella said oil firms were asked to submit their inventories to determine how much of their products could be sold without higher excise taxes.
Consumers should be notified if the new tax is included in prices posted in pump stations, he said.
Aside from fuel, taxes on sugar-sweetened drinks and cars were increased under the first tranche of tax reform to offset a reduction in personal income tax rates.