Fuel tax hike only for new stocks: Energy dept

ABS-CBN News

Posted at Jan 03 2019 03:10 PM | Updated as of Jan 03 2019 04:35 PM

MANILA - The Department of Energy (DOE) on Thursday warned fuel retailers against unjustified price increases, with the second round of excise tax increases set to take effect.

Higher duties apply only to new stocks that are expected to retail from Jan. 15, Energy Undersecretary Wimpy Fuentebella said.

Some retailers in Central and Northern Luzon, however, have exhausted their 2018 inventory and were monitored to have imposed higher prices.

Retailers were ordered to justify price increases to the DOE within 5 days of implementation or face criminal and administrative cases, Fuentebella said.

In a statement, Petron Corp. said some stations with low storage capacity started implementing the additional excise taxes on Jan. 2. The retailer said the new prices were properly implemented based on the guidelines set by the DOE.

Under the Tax Reform for Acceleration and Inclusion (TRAIN) law, an additional P2 excise tax per liter will be added to the cost of diesel and gasoline, which would take the total excise tax for diesel to P4.50 and for gasoline to P9.

The DOE will also strictly monitor how the additional taxes will impact overall prices, Fuentebella said.

-- with a report by Bruce Rodriguez, ABS-CBN News