The prices of gasoline
and kerosene products are expected roll back next week, while diesel price may
not change.
Based on the
calculations of oil companies, gasoline prices will likely go down by ₱0.70 to
₱0.90 per liter, while kerosene prices may be reduced by ₱0.30 to ₱0.40 per
liter.
As had been the
practice, industry players are anticipated to implement the adjustments in fuel
commodities at their pumps by Tuesday, July 7.
By far, this is the
first rollback happening in almost two months of price hikes since increased
demand for petroleum products had ignited rally in prices in the world market.
Beyond the estimated
rollbacks, consumers in some areas may still see upward adjustments in their
purchase of petroleum products because the 10 percent import duty for crude and
finished petroleum commodities are still being enforced by the other oil firms.
The pass-on of the cost
impact of the import levy should have technically stopped on June 25 with the
lapse of the Bayanihan to Heal As One Act, but given the inventories of the oil
companies, this should continue until their imported products with higher taxes
had been used up.
When the import
duty-imposed products are fully sold, the Department of Energy (DOE) indicated
that the pass-on of the ₱1.56 to ₱1.60 per liter price hikes will already
cease.
The hike in the import
tax of oil commodities, as prescribed under Executive Order 113, was resorted
to as additional cash-raising activity for the State’s stimulus package at the
height of the coronavirus pandemic.
There had been almost a
month of delay in the implementation because of the oil firm’s product
inventories; and that applies the same in the winding down of the pass-on of
the cost impact of the oil import levy.
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