Oil Price Hike Not Applicable To 2017 Stocks
There will be no increase in gas prices with the implementation of the tax reform law this month. The Department of Finance (DOF) clarified that the increase is not expected to take effect immediately on January 1 as it takes a few days for the 2017 oil stock to be use up.
The Department of Energy (DOE) also issued an advisory to the oil industry to advise their dealers that pump prices should only reflect stocks that have actually had the new excise tax rates imposed, and that old stocks should be sold on the old excise rate or at zero-rated excise tax for diesel product.
According to Kabayan Party-list Representative and Assistant Majority Leaer Ron Salo, it takes weeks for the fuel excise to reflect on the gas prices at the gas pump.
The tax reform law signed into law last December 19 imposes the following fuel prices on new stocks of oil starting January 1, 2018.
|Regular and premium unleaded gas|
|Diesel and fuel for pubic transportation|
|Liquefied petroleum gas (LPG)|