Oil price hike on January 8 not due to Train Law – DOE

Ralf Rivas
Oil companies will hike diesel prices by P0.70 per liter and gasoline by P0.80 per liter amid price movements in the global market

INCREASES. Global market forces force local players to slightly increase gas prices. Photo by Darren Langit/Rappler

MANILA, Philippines – Pump prices will increase on Tuesday, January 8, amid movements in the world market, various oil companies confirmed.

Caltex, Shell, PTT Philippines, Petrogazz, Phoenix Petroleum, and Eastern Petroleum will increase P0.70 per liter on diesel and P0.80 per liter on gasoline.

The changes will be implemented starting 6 am Tuesday.

The Department of Energy (DOE) said diesel prices will range from P33.45 to P40.98 per liter, and gasoline from P39.25 to P53.60. 

The agency said the increases are due to the price movements in the global market and are not due to the higher excise tax as specified under the Tax Reform for Acceleration and Inclusion (Train) Law.

The agency said most gas stations would implement the higher excise tax between January 15 and February 1.

The DOE said that only 32 Flying-V and 268 Petron gas stations had implemented the hikes after their stocks were depleted.

Fuel prices will remain frozen for 15 days in areas that were placed under a state of calamity.

Gas prices have been low compared to last year’s prices due to tumbling prices in the global market.

The DOE said the steep declines in the world market will cushion Filipinos from the effects of the Train Law. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.