DOE wants power to suspend excise tax on fuel during ‘abnormal conditions’ | Inquirer News
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DOE wants power to suspend excise tax on fuel during ‘abnormal conditions’

/ 10:33 AM October 20, 2021
FUEL PRICE INCREASE/APRIL 12, 2011An attendant loads up a jeepney's fuel tank in a gas station along EDSA, Q.C. Oil companies Pilipinas Shell, Chevron Philippines, PTT, City Oil Philippines, and Total increased the prices of gasoline and diesel products today by P1.50 per liter.

FILE PHOTO BY LYN RILLON

MANILA, Philippines — The Department of Energy (DOE) is seeking the power to suspend excise tax imposed on fuel during “abnormal conditions” in light of the recent oil price hikes hammering motorists in the country.

Energy Secretary Alfonso Cusi said this can be a part of the amendments to the Oil Deregulation Law.

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“Just like when the Bayanihan Law was passed, there was a provision to suspend the implementation of the excise tax kung papalo ng over $80 per barrel in the world market. Nawala po ‘yun, dahil nag-expire [ang Bayanihan Law],” Cusi said in an interview with ABS-CBN News Channel.

(Just like when the Bayanihan Law was passed, there was a provision to suspend the implementation of the excise tax if prices of fuel will reach over $80 per barrel in the world market. This was no longer effective since the law already expired.)

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“So baka pe-pwede na on cases like that, the DOE will have the authority to move for the suspension of excise tax so we can have certain measures,” he added.

(So maybe in cases like that, the the DOE will have the authority to move for the suspension of excise tax so we can have certain measures.)

Cusi, however, stressed that this authority can only be exercised during “certain abnormal conditions.”

“What we would like in the law is that it can be already part of the law, the authority to suspend it in certain abnormal conditions. That has to be deliberated and discussed para lang sa ganun katulad ng ganitong sitwasyon, para bang our hands are tied,” Cusi said.

(That has to be deliberated and discussed because in similar situations, it seems that our hands are tied.)

The DOE has written a letter to the Senate and the House of Representatives to amend the Oil Deregulation Law to allow the government to intervene and address sudden oil price hikes.

Prices of gasoline and other petroleum products have gone up by more than P7 a liter in less than two months. On Tuesday, local oil companies raised diesel prices by P1.50 a liter and gasoline by P1.80.

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Cusi said the DOE has asked local oil companies to provide discounts to motorists.

The DOE is likewise discussing with the Department of Transportation and the Land Transportation Franchising and Regulatory Board the provision of subsidy to aid public utility vehicle drivers affected by the oil price hike, said Cusi.

EDV

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TAGS: DoE, Oil deregulation law, Oil price hike
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