NINETEEN percent of all fuel retail outlets in the country are already implementing the second tranche of the fuel excise tax.
Based on Department of Energy (DOE) monitoring, 1,639 fuel retail outlets out of the 8,630 service stations nationwide have implemented as of January 17 the higher rate imposed under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The next-round hike entails an additional excise tax of P2 imposed per liter of diesel and gasoline, and P1 per kilogram on household LPG. There will also be an additional 12-percent value-added tax, for a total of P2.24 for both diesel and gasoline, and P1.12 for LPG.
Meantime, oil firms will implement a price increase in gasoline by P0.10 per liter, diesel by P0.40 per liter and kerosene by P0.15 per liter.
The price adjustment takes effect 6 a.m. of Tuesday, January 22. PTT Philippines, Phoenix Petroleum Seoil Philippines, Total Philippines announced the price hike on Monday afternoon. Other oil firms are expected to follow suit.
The DOE, which earlier warned oil players against prematurely imposing the new excise tax rates on their old inventory, conducted validation activities across various fuel retail outlets on January 10 and 11 and 14 and 15. On those dates, a total of 22 retail outlets (ROs) across Quezon City, Caloocan and Malabon were found to have implemented the second tranche of taxes earlier this month.
DOE field offices also conducted validation activities, with 57 ROs visited by the Luzon Field Office, seven by the Visayas Field Office and 29 by the Mindanao Field Office.
The agency validated copies of depot-issued delivery receipts and sales invoices with the official receipts being issued by the ROs to determine the specific excise implementation dates and to verify that the outlets are imposing the correct excise tax rates.
It also verified the ROs’ compliance in clearly displaying the 1 meter by 1 meter signs which inform consumers of the implementation date of the additional excise taxes and the petroleum products that are covered.
The DOE also served show-cause orders, directing the ROs to explain in writing and under oath their early implementation of the second tranche. They were asked to submit all the supporting documents to substantiate the validity of the imposition.
“We are vigilantly monitoring the implementation of the TRAIN law so that our consumers will be amply protected,” Energy Secretary Alfonso G. Cusi said.
The DOE is set to conduct a second round of validation activities in the coming days and a full report will be released once all the data is consolidated.
“The second tranche of fuel excise tax will fund crucial infrastructure projects and poverty alleviation programs needed to strengthen our ability to compete globally,” added Cusi.