Published January 15, 2019, 12:17 AM
By Myrna
Velasco
The string of bad news continues
this week for the Filipino consumers as prices at the pumps rose again by P2.30
per liter for diesel products; and P1.40 per liter for gasoline products.
The per-liter-cost of kerosene
products, used by many households in rural areas as well as some industries
such as aviation, had also gone up by P2.00 per liter.
As of press time, the oil companies
that already hiked pump prices include Pilipinas Shell Petroleum Corporation,
PTT Philippines, Chevron and Eastern Petroleum, Total and Jetti effective 12:01
and 6:00 a.m. today (January 15). The rest of the industry players are
anticipated to follow.
It will not be coming as a relief
for consumers that bulk of the gasoline stations in the country will also be
jacking up by P2.00 per liter this week the excise taxes on petroleum products
cognizant to the mandate of the Tax Reform for Acceleration and Inclusion
(TRAIN) Act.
The Department of Energy (DOE) has
indicated that it is anticipating the massive scale implementation of the
second tranche excise taxes within the period from January 15 to February 1.
Beyond the excise tax hikes, this
week’s pump price adjustments will also be levied with corresponding
value-added taxes (VAT) – being added component in the costs being passed on at
the pumps.
Energy Secretary Alfonso G. Cusi
said the enforcement of the second package of the tax reform of the Duterte
administration is highly necessary because the country’s goals of economic
progress are anchored on proceeds to be fetched from it.
“The funds to be raised from the
collections will be invested to the people through key infrastructure projects,
intensified social development and other priority projects of the government,”
the energy chief explained.
Following the unexpected plunge in
global oil prices around October to December last year, market watchers and
analysts are expecting a “more balanced’ supply-demand scenario in the market
this 2019.
The latest investment bank to give
its prognosis on the market is Morgan Stanley projecting that world oil prices
will likely hover from US$61 to US$65 per barrel this year.
The reinforced inventory of the US
market had been afforded a counterweight by the decision of the Organization of
the Petroleum Exporting Countries (OPEC) to slash production this year.
The OPEC’s production cut commitment
had been set at 800,000 barrels per day; plus the 400,000 barrels per day
output slash that producers affiliated with Russia had also pledged – for a
total of 1.2 million barrels per day.
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