2019 fuel excise tax increase is now in full swing

As the new chapter begins, the Department of Energy (DOE) welcomed 2019 with the announcement of additional fuel excise tax provided by law.

Based on the Tax Reform for Acceleration and Inclusion (TRAIN) law, there will be an additional P2 per liter excise rate imposed on diesel and gasoline, P1 for every liter of kerosene, and P1 for every kilogram of cooking gas or liquefied petroleum gas (LPG).

The department also clarified that the gas prices would not escalate immediately, as the 2018 fuel stocks are estimated to last until mid-January 2019, depending on demand. The new tax rates would only be applied once the oil firm emptied its gas inventory from last year, similar to what was done by the start of 2018.

That said, DOE warned the companies who would take advantage of this second fuel excise hike by increasing prices of fuel imported before the implementation of the new rates. If so, violators will face administrative penalties such as the closure of the firm and large-scale estafa.

Senate Economic Affairs Committee Chair Win Gatchalian, on the other hand, assured to keep an eye and monitor the inventories of oil companies to prevent the selling of old oil stocks for a higher price.

Given this change in prices, it’s better to review and manage your budget properly. Well, with the push and pull on fuel prices lately, no one knows what would happen next. Might as well get a new fuel-efficient car in the market today, or not?

Source: CNN Philippines