Oil price hikes greet motorists

Motorists should expect up to P2.50 per liter increase in petroleum prices in the coming weeks. contributed photo

After a weekly rollback in the last two months of 2019, motorists are faced with the prospect of bigger price hike in the coming days as world crude prices rises, in addition to the implementation of the second tranche oil excise taxes this month under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The government reminded oil companies to deplete their existing 2018 oil stocks before imposing the added excise tax on its 2019 stocks.

According to oil industry sources, up to P2.20 to P2.50 per liter would be added to the diesel price. P1.40 to P1.50 per liter will increase fuel prices, while in kerosene or gas, increases of P1.80 to P1.90 per liter in the coming weeks.

Earlier, the Department of Energy (DoE) estimates all major companies would have used up all their inventories and start passing on the additional excises taxes to consumers between 15 January and 1 February.

The DoE earlier noted that some 400 gasoline stations nationwide have begun charging higher petroleum prices.

Under the TRAIN law, the Department of Finance would impose an additional P2 per liter excise tax on diesel and gasoline products, P1 per kilogram on liquefied petroleum gas and P1 per liter on kerosene starting this year.

The government reminded oil companies to deplete their existing 2018 oil stocks before imposing the added excise tax on its 2019 stocks.