The Department of Energy (DoE) will meet with oil companies today to ensure that they know how to correctly implement the new excise tax on petroleum products and find out how many old fuel stocks they have.
“We want to make sure they are apprised [of]the correct implementation of the Train (Tax Reform for Acceleration and Inclusion Act),” Energy Undersecretary Felix William Fuentebella said in a text message.
The DoE also seeks to determine the volume of oil stocks these companies still hold that were not levied with the new tax, noting that they have different inventory levels, he added.
Formally known as Republic Act 10963 and signed by President Duterte on December 19, 2017, Train aim to increase revenues to fund the government’s “Build, Build, Build” infrastructure program. It took effect on Monday.
Under the new law, diesel prices will increase by P2.50 per liter on the first year, P4.50 on the second and P7 per liter on the third onward.
Also, gasoline prices will jump by P7 per liter on the first year, P9 on the second and P10 on the third.
Citing Finance Secretary Carlos Dominguez 3rd’s estimates, Presidential Communications Secretary Martin Andanar said fuel stocks bought last year should last for at least a week.
“Dominguez said the increase in oil prices is not expected to take effect immediately, because it will take a few days before fuel stocks from 2017 get used up. The excise tax paid for [those stocks]is for the refinery,” Andanar said.
Fuentebella noted that they already “came out with advisories” and are “[f]ollowing up on the implementation.”