THE Department of Energy (DOE) said government expects to collect as much as P6.8 billion from the newly imposed 10 percent import duty on petroleum products if it is imposeduntil December.
“The expected impact of the 10 percent import duty is around P0.60 for gasoline and P0.80 each for diesel and kerosene. The estimated income for government if that is implemented on May until December 2020 is around P6 billion,” DOE Undersecretary Felix William Fuentebella told reporters in a virtual briefing yesterday.
The duty may revert back to zero if global crude prices recover to $64 per barrel or the end of the state of calamity in the Philippines due to the pandemic.
The DOE said the impact of additional import duty will be dependent on the exhaustion of old stocks in retail stations as the tariff will only be applicable for products that came in after Executive Order 113 series of 2020 was made effective.
“Based on our estimates, it used to take three days for a supply of a gas station to be exhausted but now it already takes six days. Depots are the same, it used to be 10 days but now its at 20 days. We think that there will be a window period of 20 to 30 days before the tariff can be implemented from the May 6 publication of the order,” Rino Abad, director of the Oil Industry Management Bureau, explained in the same briefing.
“We don’t expect for it to be felt already by next week, players were already asked to submit their inventory reports to prove it. We will question them if some of them will already implement it by next week,” Abad said
