Gas Stations Demands Higher Price Of Petroleum -DOE

DOE Says 444 Gas Stations Demands Higher Price of Petroleum Due to 2nd Tranche of TRAIN Law

GAS STATIONS – 444 gas stations demanded a higher price of petroleum due to the 2nd tranche of the TRAIN LAW.

Petroleum was converted into several classed of petroleum products. Companies can produce any kinds of petroleum products depending on the demands of the market.

The major share of petroleum was fuel oil and gasoline that was used in most vehicles worldwide.

Petroleum plant
Photo Source: TechSpot

Based on a report from CCN, 444 gasoline station in the Philippines demanded higher fuel prices because of their additional excise tax.

The additional excise tax was part of the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law. Last December 2017, President Rodrigo Duterte signed the law stating if a company has greater income, it will have higher tax rates.

gas stations
Photo Source: Franchise Business Philippines

According to the report, the gasoline station demanded an additional P2 per liter of gasoline and diesel, P1 for kerosene, and P1 on cooking oil or liquefied petroleum gas (LPG) for the whole year of 2019.

The Oil Industry Management Bureau of Department of Energy (DOE) revealed that these 444 gasoline stations are from Petron (368), Shell (46), and Flying V (29).

petron gasoline stations
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The DOE Undersecretary, Wimpy Fuentebella, stated that 8,600 more gasoline stations were about to follow the order of those 444 gas stations.

Fuentebella said the Filipino people will benefit the higher price of the fuel products because it will be used in the road projects of the government.

“Saan siya mapupunta? Ma-traffic ‘di ba? Kailangan ng bagong daan, kailangan ng bagong tulay”

Marami tayong nakikitang mahihirap ‘di ba? Kailangan tulungan yung mahihirap through poverty alleviation programs,” he added.

Wimpy Fuentebella
Photo Source: Rappler

Based on the report, DOE spokesperson also stated that the fuel companies have to empty their last year’s inventories before demanding for an excise tax. It is stated that only the new fuel products will be covered on the TRAIN law’s second tranche.

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