By Angela Lorraine Celis and Jed Macapagal
The government raised an additional P1.5 billion from the 10 percent duty which was slapped, temporarily, on all imported crude and refined petroleum products, to support the country’s coronavirus disease (COVID-19) response.
Data sent by Carlos Dominguez, Department of Finance secretary, showed that the additional revenue from all oil importations covered by the implemented executive order (EO) amounted to P1.21 billion.
Meanwhile P283.06 million and P3,325 were raised from the additional levies imposed on liquefied petroleum gas and naphtha products, respectively.
These figures covered the months of May and June.
Of the total amount, P1.34 billion was accounted for by the additional duties, while P160.4 million in value added tax.
The President, on May 2, signed EO No. 113, titled “Temporarily Modifying the Rates of Import Duty on Crude Petroleum Oil and Refined Petroleum Products Under Section 1611 of Republic Act No. 10863, Otherwise Known as the ‘Customs Modernization and Tariff Act,’” which temporarily raises the taxes on imported oil products.
Under the issuance, the additional 10 percent duties would be added on top of the existing most-favored nation and preferential import duties.
Meanwhile, the Department of Energy (DOE) has directed its Oil Industry Management Bureau (OIMB) to ensure the proper implementation EO No. 113.
The agency noted that so far, only Pilipinas Shell reported that 644 of its retail outlets have already implemented the tariff adjustment but for diesel products only as this week’s adjustments is still mainly attributed to developments in the global oil markets.
The DOE projects that based on inventory reports, most of the added costs might be included beginning this week.
But even with the additional P1.50 to P1.60 per liter tariff range, prices of petroleum products continue to remain low as year-to-date adjustments still stand at net decreases of P6.72 per liter for gasoline, P9.99 per liter for diesel and P13.69 per liter for kerosene.
“Protecting our consumers is always our top priority. We will not allow any unfair practice to derail consumer interests, especially given the challenges we continue to face in the midst of the pandemic,” Energy Secretary Alfonso Cusi said.
He added that under the EO 113, the temporary imposition of additional tariffs will immediately revert to 0 percent upon the certification of the DOE that a trigger price of Dubai Crude reaches $64 per barrel or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first.