By Myrna Velasco
With the enforcement of the Tax Reform for Acceleration and Inclusion (TRAIN) Act and the upswing in global oil prices, the cost of gasoline at the pumps will increase by as much as P3.77 per liter, and diesel products by P3.35 per liter.
Kerosene, on the other hand, will also increase by P3.91 per liter this week.
This is the severe financial whip that motorists had been apprehensive about since New Year’s Day, as the non-application of TRAIN taxes on oil stocks then was just seen as a mere act of ‘delaying the bad news’ for the consumers.
The country’s oil industry players advise an increase of P0.80 per liter in gasoline pump prices this week, and P0.55 per liter for diesel and kerosene, owing mainly to movements in global prices.
Additionally, the all-encompassing impact of the TRAIN adjustments will be felt fully by motorists this week as most oil companies would have exhausted inventories and will already be retailing newly procured products at their stations.
As set forth, the additional excise tax for gasoline will be P2.65 per liter, diesel will be P2.50 per liter, and kerosene will have P3.00 per liter excise tax. All of these will also carry VAT charges of 12-percent.
Some oil companies already adjusted prices last week relative to the TRAIN-enforced taxes. However, complete implementation in most gasoline stations is anticipated this week.
As of press time, Pilipinas Shell Petroleum Corporation is the first to announce its price adjustments. Other industry players are expected to follow.