New Round Of Fuel Tax To Begin This Month, Consumers Brace For Increase In Oil Prices
OIL PRICES – After crude oil returned on bull market on Monday (January 14), prices of oil rose as much as ₱2.30 per liter.
According to Inquirer, consumers will be further burdened of the huge increase, added with the new round of excise tax on fuel which will start this month.
A jeepney driver named Rady Galang may have to extend his route a little longer just to cover the price of diesel due to the increase. Galang, whodrives the Bel-Air-Washington route in Makati City from 3 a.m. to 8 p.m. every day, asked if he really have to work for more hours despite being exhausted so that he won’t make his family poor.
Galang’s daily earnings dropped from ₱1200 to ₱800 due to the increase of oil prices and the first round of excise oil tax.
Gas station franchises like Shell, Caltex, PTT, Eastern, Total, Unioil and Seaoil recently announced the increase of ₱2.30 per liter on diesel and ₱1.40 per liter on gasoline.
Shell, Seaoil, and Caltex said that they increased their prices of kerosene by ₱2 per liter. Crude oil, on the other hand, gained 20% last week from low levels in December last year.
As per the report, the Organization of Petroleum Exporting Countries and allied producers decided to cut their collective output by 1.2 million barrels per day, which resulted to the increase of prices.
The Department of Energy (DOE) noted the retailers that inventories that were bought before 2019 are not included to the excise and VAT, and should not be sold with the pass-on cost of ₱2.24 per liter of diesel and gasoline, and ₱ 1.12 per liter of kerosene.
The DOE further said that without the additional tax, diesel prices would have been between ₱36.35 and ₱ 38.23 per liter; gasoline prices would cost
between ₱41.95 and ₱54.86, and a liter of kerosene would be at ₱40.82 to ₱50.90.
With the increase, a liter of diesel, gasoline, and kerosene would cost ₱38.59 to ₱40.47; ₱44.19 to ₱57.20; and ₱41.94 to ₱52.02, respectively.
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