Finance Undersecretary Gil Beltran on Friday rejected the claim of oil refiner Petron Corp. that the increase in fuel excise taxes under the Tax Reform for Acceleration and Inclusion Law led to a decline in its earnings in the first half of 2019.
Beltran, who is also the DoF’s chief economist, said in a statement the scenario presented by the petroleum company was “highly unlikely,” given the improved income performance reported during the same period by rivals like Pilipinas Shell Corp.
Petron released a statement on Aug. 8 declaring its net income in the first half of 2019 dropped significantly by 72 percent versus the same period last year.
Petron claimed that price increases resulting from the TRAIN’s implementation led to a decrease in its domestic fuel sales.
“We looked at their financials and it seems highly unlikely. It is misleading for Petron to blame TRAIN for their decrease in sales,” Beltran said. He added the DoF looked at recently released reports from other major players, including Pilipinas Shell Petroleum, which also has a refinery.