Published
By Myrna M. Velasco
The Department of Energy (DOE) is strictly monitoring the price hikes of P1.50
to P1.60 per liter that the oil companies are implementing due to the
10-percent import duty levied on crude and finished petroleum products.
With the price
adjustments due this week, Energy Secretary Alfonso G. Cusi has directed the
DOE’s Oil Industry Management Bureau (OIMB) “to ensure the proper
implementation” of the hiked import duty as prescribed under Executive Order No.113
issued by President Rodrigo Duterte on May 2 this year.
The energy chief said
the department already met with the oil companies “to discuss the way forward,
including the strict compliance with the EO’s guidelines.”
By far, this sets off second round of price increases this week – after the
Tuesday-implemented upticks
that had been due to product cost swings in the world market.
that had been due to product cost swings in the world market.
As previously stated by
the energy department, it apprised the oil companies that they can only
increase prices relating to the higher import duty once their old inventories
had been used up.
Since oil demand in the
country crashed because of the lockdown imposed by the government due to the
coronavirus pandemic, it took longer time for the old stocks of the oil firms
to be sold and that warranted the price adjustments to be deferred until this
time.
“Projections based on
their inventory reports indicated that the added costs might be included
beginning the third week (around June 14-20),” the energy department has
stipulated.
Through the rise in
import duty for oil products, the Philippine government is eyeing to raise
about P6.8 billion or higher from June to December this year, so this could
help bankroll the country’s response to the COVID-19 health crisis.
When the adjustments were first calculated in May, these were just at the level
of P0.62 to P0.80 per liter; but because of the relentless hefty increases in
pump prices over the past month, the re-calculated cost escalations already
climbed to P1.50 to P1.60 per liter.
As of Wednesday (June
17), the DOE reported that Pilipinas Shell Petroleum Corporation already
implemented import duty-linked upward price adjustments in 644 of its retail
stations in various parts of the country.
And while the rest of
the industry players are anticipated to follow, Cusi noted that “protecting our
consumers is always our top priority.”
He added “we will not
allow any unfair practice to derail consumer interests, especially given the
challenges we continue to face in the midst of the pandemic.”
The energy department indicated that if there is any consolation to these price
hikes, that is anchored on the fact that price rollbacks implemented in the
earlier months of the year were still considerably massive compared to the
price hikes that persistently recurred from May to June.
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