The start of the new year has brought an increase to fuel prices in the country. January 1, 2020 marks the implementation of the third and final round of taxing under the Tax Reform for Acceleration and Inclusion law (TRAIN)
The TRAIN law was passed in 2017. With its passing into law, it brought about new taxing schemes into play. Petroleum-based products were also included under the new law. Diesel, which previously had no taxing applied to it, got a P2.50 per liter tax on January 1, 2018. Gasoline also received taxing under the TRAIN law, coming in at P7.00 per liter on the same date. Since then, the taxation of both fuels has seen a steady increase annually.
In 2019 taxation for gasoline and diesel grew by another P2.00 per liter. This addition brought the total tax for gasoline up to P9.00 per liter and P4.50 per liter for diesel. Value Added Tax (VAT) wasn’t included in the final pricing.
For the 2020 calendar year, the taxing for petroleum goods is expected to go up again. Gasoline will have another P1.00 increase while diesel will have a P1.50 hike. This brings the total taxing of gasoline to P10 and P6 for diesel, excluding VAT. Other petroleum-based products also have updated taxing on them. Taxing on kerosene has reached P5.00 per liter, while LPG has reached P3.00 per kilogram as of 2020.
With these increase taxation laid out, expect gas prices and transportation to get more expensive in the coming months. You can also add the fluctuating international oil market prices into the equation. The effects of the price hike do not only affect the average consumer but also affect the public transportation system that still relies on diesel to power jeeps and buses.