Fuel excise suspension pushed
FILE PHOTO
MANILA, Philippines — Amid the production cut announced by the Organization of Petroleum Exporting Countries (Opec), transport groups again urged President Ferdinand Marcos Jr. to temporarily suspend the government levy on petroleum imports.
The Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap) and Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston) made the appeal after the Opec announcement spurred a big increase in local fuel prices starting on Tuesday.
“Even if only for a few months,” Fejodap president Ricardo Rebaño said in an interview with GMA radio station dzBB, adding that that would be better than leaving the public transport sector in a lurch again.
Tax structure review urged
Piston president Mody Floranda agreed and said the government should also review government taxes on petroleum products.
“The government should really review the provisions of the oil deregulation law, the TRAIN law, e-vat and the excise on petroleum products because we do not import petroleum products on a weekly or monthly basis, but only based on what the Department of Energy (DOE) says,” Floranda said. Both the DOE and oil companies announced on Friday that local prices of diesel may increase by P6 up to P6.30 per liter, kerosene by more than P2 per liter and gasoline by P1.10 to P1.40 per liter.
Article continues after this advertisementOil firms are expected to announce the amounts of the increases on Tuesday.
Article continues after this advertisementCaused by Opec
Rino Abad, director of the DOE Oil Industry Management Bureau, said at a Palace briefing last Friday that the increase was due to the Opec decision to cut production output by 2 million barrels per day.
The oil industry cartel announced the hike only 10 weeks ahead of winter in the northern hemisphere when global oil prices are usually at their peak.
Dubai crude, the benchmark used by the Philippines and other Asian countries, was at $92.98 per barrel on Oct. 6 while Brent crude was at $93.60 per barrel.
The Opec decision to cut oil production strained the already tense relations between the United States and Saudi Arabia, with US Treasury Secretary Janet Yellen saying the decision was “unhelpful and unwise” for the global economy.
“We’re very worried about developing countries and the problems they face,” Yellen told the UK newspaper Financial Times.
Philippine prices of diesel and kerosene have been on a downtrend for five weeks. Last week, gasoline prices went up by 40 centavos per liter, diesel by 45 centavos per liter and kerosene by 85 centavos per liter.
Cumulative increases stand at P14.45 per liter for gasoline, P28.95 per liter for diesel and P23.25 per liter for kerosene, according to the DOE.
—WITH A REPORT FROM REUTERS
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