/ News

Oil companies urged to stagger fuel prices by the DOE—Suspension of Fuel Excise tax unlikely

With fuel reaching an all-time high, companies are being asked to slow price increases down.

Earl Lee on Mar 16, 2022

Motorists around the country are feeling the strain of the current fuel prices, so much so that the Department of Energy (DOE) is urging oil companies in the Philippines to slow down their oil price increases to help cushion the blow. Both gasoline and diesel prices are going through the roof and breaking records across the board.

Related: Can I trust alternative brand gas stations?

Oil firms may implement a staggered basis for fuel price increases, and according to the DOE’s Oil Industry Management Bureau Assistant Director, Rodela Romero:

“Noong nakaraang linggo po may oil companies na nag-implement ng staggered implementation at mayroon din pong oil companies na hindi nag-implement ng kaniyang adjustment. Hopefully makinig po iyong ating mga kasama sa industriya.” [Last week, some oil companies implemented staggered implementation and some oil companies did not implement its adjustment. Hopefully, our industry colleagues will listen]

Rodela Romero
Oil Industry Management Bureau Assistant Director, Department of Energy

The DOE wants all oil companies in the Philippines to follow the leads of others, implementing stagger price hikes to help alleviate the growing trouble of rising fuel costs.

Even if there is an increase, the DOE has assured the public that there is enough fuel supply for the country, and certain efforts are being made to work with agencies and affected motorists.

On top of this, the Department of Finance (DOF) has played around with the idea of suspending the fuel excise tax but stated that the lift will benefit the upper-income bracket classes in the country, and might hinder social service programs for the less fortunate.

Instead, the DOF is proposing a subsidy that targets those who need it the most. As is the case with public utility drivers who will be able to receive aid through the Pantawid Pasada Program.