Govt reminds fuel merchants: don’t reflect higher excise tax rates on old stocks

January 1, 2018 - 1:26 PM
3465
Phil. Star file photo of a gas station.

MANILA – Retailers of petroleum products are not yet supposed to reflect the additional excise tax from the TRAIN law, even though the tax reform measure takes effect Jan. 1, 2018 , because they are still selling stocks that were not imposed the higher excise rates.

The Department of Energy and Department of Finance issued this advisory to the public Monday, at the start of the year, as the Tax Reform for Acceleration and Inclusion (the TRAIN law) became effective.

The advisory was issued by the DOE’s Oil Industry Management Bureau (OIMB) and the DOF amid warnings in some quarters the start of the year will see a spike in prices of basic goods owing to the impending higher cost of petroleum products.

Under the TRAIN, an additional P3 per liter was to be added to the existing petroleum excise rate of P4.35

The two government agencies pointed out, however, that the retailers were still disposing of the old stocks at the start of the year, and these were acquired at the existing rate.

“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,” officials said.

Meanwhile, regular monitoring by DOE of international oil prices said there may be movement in the latter on Tuesday, January 2.

The gasoline prices may rise by 15 centavos a liter, and 60 centavos a liter for diesel. Kerosene could go higher by 55 centavos a liter.

Provinces struck by recent disasters, however, remain under a price freeze for kerosene and household LPG for 15 days since these areas were declared under a state of calamity.

Parts of the Visayas and Mindanao were struck by back-to-back tropical storms Urduja and Vinta.