Danessa
Rivera (The Philippine Star) - May 22, 2018 - 12:00am
MANILA, Philippines —
Oil companies are implementing today over P1 per liter increases of on fuel
products after global crude prices spiked above $80 per barrel and the peso
weakened further against the dollar last week.
This is the second
consecutive week that petroleum firms raised pump prices.
Oil firms raised prices
for gasoline by P1.60 per liter, diesel by P1.15 per liter and kerosene by
P1.00 per liter.
Eastern Petroleum,
Flying V, Petron Corp., Pilipinas Shell Petroleum Corp., Phoenix Petroleum
Philippines Inc., PTT Philippines Corp., Seaoil Philippines Inc. and Total
Philippines Corp. implemented their respective price adjustments at 6 a.m.
today.
UniOil Petroleum Philippines Inc. said its price increase would take effect at
6:01 a.m.
Petron Corp. has yet to
announce its price changes as of yesterday afternoon.
During last week’s
trading, Brent crude soared to $80 per barrel after Venezuela production
dropped, a strong global demand and looming US sanctions on Iran, Reuters
reported. This is the first time global crude prices zoomed beyond $80 per
barrel since November 2014.
The peso also
depreciated further against the dollar, staying above the P52:$1 level.
Energy Secretary
Alfonso Cusi said his agency is studying measures to mitigate further increase
in fuel prices in light of the major price hikes.
“We are studying
options like suspension of excise tax on fuel, increase in existing fuel
discount to public utilities (land), expedite price unbundling, energy
conservation and efficiency, development of indigenous sources, and vouchers
for PUB (public utility buses) in coordination with DOTr (Department of
Transportation), among others,” he said in a text message.
He added that “there is
a mechanism on the implementation of excise tax when oil price reaches certain
level” as he called on everyone to conserve fuel and use energy efficiently.
The Tax Reform for
Acceleration and Inclusion (TRAIN) Act imposed hefty excise tax increases on
gasoline from P4.35 per liter to P7 per liter while new tax rates of P2.50 per
liter were imposed on diesel, P3 per liter on kerosene, and P2.50 per liter on
auto liquefied petroleum gas (LPG).
However, there is a
provision in the law that the TRAIN taxes on fuel products will be suspended
when benchmark crude oil prices hit $80 per barrel for a period of three
months.
Spiraling oil prices
have been blamed for the highest inflation rate in years recorded in the first
quarter of 2018. Economic managers, however, oppose the suspension of the fuel
excise tax. – With Paolo
Romero
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