Some Oil Companies Start To Implement The Last Tranche Of Fuel Excise
The TRAIN Law, which reformed the whole tax system in the Philippines is now on its third and last tranche for the fuel excise. Pilipinas Shell Petroleum Corp. (PSPC) and PTT Philippines Corp. are the first petrol company to have implemented this excise tax in some of their stations.
This was confirmed by the Department of Energy (DOE) assistant secretary Leonido Pulido in a text message, saying that both PSPC and PTT have already implemented TRAIN in 267 of their stations and PTT on nin stations. Other agencies, on the other hand, are still being validated for compliance.
The third tranche of the TRAIN law mandates a ₱1.50 per liter excise tax on fuel. However, the DOE through the Oil Industry Management Bureau (OIMB) directed the oil companies to impose only the additional excise tax on the new stocks of petroleum products. Old stocks, therefore, should not be affected yet.
Oil companies have a minimum inventory of 15 days while stocks for household liquefied petroleum gas (LPG) have a minimum inventory requirement of seven days.
As a regulatory measure to ensure compliance, the DOE instructed the oil companies to submit their inventories to monitor how much stock is left in their books. The companies were also required to post what products would be charged with excise tax and when it would be implemented.
The DOE had also conducted random checks from the refineries of these oil companies down to their retail stores or stations.
In 2018, the first tranche increased the excise tax on gasoline by ₱7 per liter from ₱4.35. Diesel, on the other hand, with ₱2.50 per liter, ₱3 per liter for kerosene, and ₱1 per kilogram for LPG. This was followed by ₱9 per liter on gasoline, ₱4.50 per liter for diesel, kP4 per liter for kerosene, and ₱2 per kilogram on LPG in 2019.