Prices of gasoline and other oil products will go up by P1 to P1.50 per liter starting New Year’s Day following the upward adjustments of the excise tax imposed on them.
The Bureau of Internal Revenue said the new tax schedule covered the third and final round of excise tax increases on petroleum under Revenue Regulations No.2-2018 which implemented Section 82 of the Tax Reform for Acceleration and Inclusion Law.
The BIR, however, advised oil companies as well as gas station operators to consume their old inventories first before applying the new rates.
Under the law, gasoline, kerosene, Liquefied Petroleum Gas, and lubricating oils are increased by P1 per liter.
Diesel goes up by P1.50 per liter.
Accordingly, the tax rates for other oil products are also revised upward by P1.
These included naphta, asphalts, denatured alcohol, processed gas, and locally produced or imported oils previously but subsequently reprocessed and refined.
The last tranche of TRAIN brings the excise tax on most products to P10 per liter, or P1 higher than last year’s total of P9.
When TRAIN was implemented in 2018, the excise tax rates of the items ranged from P3 to P8 per liter.
With the imposition of additional P1.50, the effective excise tax for diesel and bunker fuels are now P6 per liter from the previous P4.50.
The total excise tax on LPG now stands at P3 per from P2 this year.
The existing tax on aviation fuel was not touched and remained at P4 per liter. (Jun Ramirez)
