MANILA – Consumers are not expected to feel the effect of the excise tax hike on fuel products beginning Jan. 1 this year, the Department of Finance said, due to stable supply and decreasing oil import price.
In a Super Radyo dzBB interview on Sunday, Finance assistant secretary Tony Lambino said that while excise tax on diesel and gasoline are set to increase from its current level by P2 per liter starting January 1, and P1 per liter for LPG and kerosene, consumers may not feel it right away.
“Hindi ko masabi kung mararamdaman talaga ng consumer natin dahil unang-una, merong mga stocks, merong imbentaryo ang ating mga oil companies. So dapat hindi pa sila magtaas ng presyo kung may imbentaryo pa sila,” he said.
According to Lambino, stocks of these fuel products are good for 15 days.
“Ubusin muna ‘yung imbentaryo at ang imbentaryo as of Dec. 31, all the imports that came in until that point ay nasa current excise tax levels,” he said.
At the same time, Lambino said the decreasing oil import price will also neutralize the effect of additional excise tax to be imposed on fuel products.
Last October, oil import price was around $80 per barrel, but it has gone down to $57 per barrel a few days ago, Lambino said.
“Ang ibig sabihin niyan, may mga price adjustments pa ‘yan, potentially mga rollbacks pa,” he said.
“So kung magkasabay ang pagbaba ng presyo at tsaka ‘yung additional excise at tsaka ‘yung timing ay tama, hindi sure kung mararamdaman ba talaga itong pagtaas sa excise,” he added.
Lambino said consumers may start to feel the effect of the excise tax hike on Jan. 15 onward.
The second tranche of increase in the excise tax on fuel products in January 2019 under the Tax Reform for Acceleration and Inclusion was supposed to be temporarily suspended to alleviate the rising prices of oil and its inflationary effects.
But the government’s economic managers took it back later following the decreasing crude prices in the world market and the pump price rollbacks. (GMA News)
