Today's Oil Price Hike Still Doesn't Reflect TRAIN Law's 2nd Oil Excise Tax Hike
As oil companies implemented a price hike today, January 8, from PHP0.40 per liter for kerosene to as much as PHP0.80 per liter for gasoline, they cautioned the public that the increase still does not reflect the second tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
As previously reported, the Department of Energy (DOE) cautioned oil companies from imposing the additional excise tax on its old inventories, which should be good for 15 to 30 days. However, DOE Undersecretary Felix William Fuentebella revealed that 268 of the 8,600 gas stations in the country--with six located within Metro Manila--already implemented the second tranche of the excise tax on petroleum products.
According to Fuentebella, there are factors to be considered for the early implementation of the excise tax by some retailers, like the storage capacity of a gas station and the turnover of old stocks.
As to when consumers can expect the oil tax hike to be implemented, the DOE shared that it will happen between January 15 and February 1.