New year, more taxes: Last fuel hike under TRAIN takes effect
MANILA, Philippines – The last and final tranche of the excise tax hike on fuel products under the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect on Wednesday, January 1.
Under the final tranche, excise tax for gasoline and kerosene will increase by P1 per liter while diesel prices will go up by P1.50.
Prices for other oil products will also increase by P1 as well, including denatured alcohol and processed gas. (READ: Dissecting TRAIN's impact on our incomes)
The last tranche brings the excise tax hike on most fuel products to a total of P10 per liter since Train law was passed in 2017.
Senator Sherwin Gatchalian on Wednesday called for stricter monitoring of fuel retailers by the Department of Energy to avoid hoarding and profiteering.
"Huwag na nating hayaan ang ilang mapagsamantalang retailers na ibenta sa mataas na halaga ang kanilang mga lumang imbentaryong produkto, gayong nabili nila ito bago pa man maimplementa ang 3rd tranche ng excise tax sa fuel," Gatchalian said.
(Let's not allow retailers to take advatange of customers by selling products from their old inventory at a higher price, when they bought it before the 3rd tranche of excise fuel tax hike was implemented.)
Under DOE guidelines, companies are required to maintain a minimum inventory equivalent to 15-day supply of petroleum products. (READ: DOE to oil firms: Use up old inventory first before slapping new tax)
The new fuel prices should only be slapped once the old stocks are replenished with the new ones bought in 2020. – Rappler.com