The country’s oil firms raised the price of diesel by P0.40 per liter, kerosene by P0.15 per liter, and gasoline by 10 centavos per liter effective 6 am Tuesday.
Chevron Philippines, PTT Philippines, Seaoil Philippines, Phoenix Petroleum Philippines, Total Philippines, and Flying V issued separate advisories of the increase, which they said reflects the movement of oil prices in the world market.
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This would be the third consecutive weekly oil price increase, reflecting the movement in world oil prices.
As the price hikes would trigger inflation worries, Senator Bam Aquino on Tuesday said it was another reason for the Department of Budget and Management to immediately release the fourth tranche of the salary increase for government workers.
The additional pay for government workers, Aquino said, would be a big help for them to cope with the oil price increase.
Meanwhile, Senator Sonny Angara said he will also study the possibility of exempting from the 12-percent value-added tax all cancer medications and other available maintenance medicines in the market, apart from medicines for three leading noncommunicable diseases in the country.
Angara, chairman of the Senate Committee on Ways and Means, said the group deliberated and made possible the VAT exemption on medicines for diabetes, hypertension and high cholesterol under the Tax Reform for Acceleration and Inclusion Law, which started Jan. 1.
On Jan. 15, oil firms raised pump prices by P2.30 per liter for diesel, P1.40 per liter for gasoline, and P2 per liter for kerosene.
On Jan. 8, oil companies also raised prices by P0.80 per liter of gasoline, P0.70 per liter of diesel, and P0.40 per liter of kerosene.
World oil prices have been on an uptrend on hopes that the United States and China can resolve a trade dispute that has triggered a global economic slowdown.
Oil prices have also been receiving support from supply cuts started at the end of 2018 by Saudi Arabia and the Organization of Petroleum Exporting Countries.
Earlier, Aquino urged the DBM to use the Miscellaneous Personnel Benefits Fund for the fourth and final part of the salary hike for government workers under the Salary Standardization Law.
The senator even submitted Resolution No. 982, expressing the sense of the Senate that the DBM should use the MPBF to pay the final part of the salary hike for government workers.
Aquino has been calling on the government to suspend the implementation of the second part of the excise tax on fuel under the TRAIN Law to help the lower price of petroleum products.
His colleague, Angara, said the original proposal among senators was to exempt all maintenance medicines from VAT. But the Department of Health suggested that the exemption be extended first to medicines for diabetes, hypertension and heart ailments due to high cholesterol”•the three leading causes of death among Filipinos.
Angara said he was ready to facilitate the passage in the Senate of any proposal from the House of Representatives to remove the VAT on other maintenance medicines and medications for cancer patients.
Under the Constitution, all tax measures must emanate from the lower chamber. This means that the Senate cannot pass a tax measure unless the House passes its own version.
The Department of Energy, meanwhile, has issued a circular repealing its previous order requiring oil companies to source Euro II compliant diesel due to lower oil prices in previous months, discounts to PUVs, continuous rollout of Pantawid Pasada program and the increase in minimum fare.
DOE previously wanted the oil companies to import the lower-priced Euro II fuel to help mitigate the higher inflation and high oil prices to consumers.
DoE has also monitored 1,639 retail outlets or 19 percent of gasoline stations nationwide which have implemented the higher excise tax on petroleum products.
DOE conducted its first round of validation activities across various fuel retail outlets on Jan. 10-11 and Jan. 14-15.
The teams were tasked by Energy Secretary Alfonso Cusi to ensure the proper implementation of the second tranche of excise tax on petroleum products under the TRAIN Law.
“The second tranche of fuel excise tax will fund crucial infrastructure projects and poverty alleviation programs needed to strengthen our ability to compete globally,” Cusi said.
Validation teams from the DOE-Oil Industry Management Bureau visited a total of 22 ROs across Quezon City, Caloocan and Malabon that have implemented the second tranche of taxes earlier this month.
DOE field offices also conducted validation activities, with 57 ROs visited by the Luzon Field Office, 7 by the Visayas Field Office, and 29 by the Mindanao Field Office.
The DOE teams compared the copies of depot-issued delivery receipts and sales invoices with the official receipts being issued by the ROs to determine the specific excise implementation dates and verify that the outlets are imposing the correct excise tax rates.
The DOE teams likewise checked the compliance of the ROs in clearly displaying the one meter by one-meter signs which informs the consumers of the implementation date of the additional excise taxes and the petroleum products that are covered.
Furthermore, Show Cause Orders were served, directing the ROs to explain in writing and under oath, their early implementation of the second tranche and to submit all the supporting documents that would substantiate the validity of the imposition.
The DOE is set to conduct a second round of validation activities in the coming days and a full report will be released once all the data has been consolidated.
“We are vigilantly monitoring the implementation of the TRAIN Law so that our consumers will be amply protected,” Cusi said.
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