With costs of world crude projected to be elevated until the yearend, local pump prices are expected to stay at above P80 per liter for the same period.
This developed as the Department of Energy (DOE) said it will push for the temporary removal of value-added tax (VAT) on electric vehicles (EVs) to fully enjoy the technology’s benefits.
Bong Suntay, an official of gasoline retailer CleanFuel and former president of the Independent Philippine Petroleum Companies Association, said all current indications show no cuts in fuel prices are expected soon.
Suntay told a hearing of the Senate committee on energy yesterday the Organization of the Petroleum Exporting Countries (OPEC) and its allies have yet to increase production, with a big portion of the volume now supplied to the European Union which stopped buying from Russia.
He said because of the embargo, supply from OPEC to Asia has decreased.
Suntay added tensions in Libya as well as the delayed resumption of operations of shale production facilities in the US and the easing of pandemic restrictions in China will continue to drive prices up.
At the hearing, Gerardo Erguiza Jr., DOE undersecretary, said the agency cannot project the prices and that the current direction is to look for possible subsidies.
“We have to look for funding or budget to address the needs of the concerned and targeted sectors. In the meantime, we call on our fellow countrymen on conservation program and lower the consumption,” he said.
According to the DOE, the average Manila price per liter of gasoline (RON95) stood at P85, diesel at P85.95 and kerosene at P92.12, as of June 14.
Meanwhile, Patrick Aquino, DOE Energy Utilization Management Bureau director, said a temporary removal of VAT on EVs will greatly help in the deployment of the technology in the country.
“The number of vehicles in the road that are electric is 0.001 percent of the total 3 million right now… Price gap has to be reduced to make EVs more affordable to Filipinos,” Aquino said at the Manufacturing Summit hosted by the Department of Trade and Industry yesterday.
In his presentation, he said the price of EVs particularly bus, sedan and sport utility vehicles will be reduced by as much as 10.71 percent if VAT on the technology is excluded.
He said EV deployment will help reduce carbon dioxide emission of the transport sector. – Jed Macapagal
