Energy Secretary Alfonso Cusi is urging the oil industry to “reduce the industry take,” meaning the oil companies’ profits, to help ease the impact of high oil prices on consumers.
He made the statement even as Senator Paolo Benigno Aquino said the government and the opposition should work to suspend the excise tax on gasoline to bring down the prices of food and other products.
“Instead of pointing fingers, let’s work together to suspend the additional tax on fuel scheduled for January 2019,” Aquino said in reaction to Malacañang’s repeated claims that the members of the Liberal Party were plotting to oust President Rodrigo Duterte.
Based on data from the Department of Energy, year-to-date adjustments of oil prices showed a net increase of P10.40 per liter of gasoline, P10.70 per liter of diesel and P9.35 per liter of kerosene.
Gasoline sells for P53.55 to P66.35 per liter depending on the octane level, while diesel sells for P45.65 to P54.90 per liter.
“These are all being studied, we are asking them to reduce also the industry take, they will discuss it,” Cusi said.
He said he met with the oil companies to discuss the mitigating measures on Tuesday.
He said another measure being eyed to ease the impact of high oil prices was the oil importation of the state-run PNOC Exploration Corp.
PNOC Exploration is now negotiating with the fuel suppliers for the delivery of an initial 50,000 metric tons of Philippine standard Euro-4 gas oil or diesel fuel after the second round of invitation to bid.
PNOC Exploration received offers from four companies at a price lower than the benchmark Mean of Platts Singapore, an industry source said. The company hopes to start the importation by the end of the month.
“All I know is that they are opening the bids and only then will they see the commitments,” Cusi said when asked about the status of the importation.
“Another mitigating measure we are studying is that once oil reaches $80 [per barrel], we can drop the excise tax.” With Macon Ramos-Araneta