Additional oil tariffs to raise P6.8 billion vs coronavirus – DOE

MANILA, Philippines – The Philippines is set to collect some P6.8 billion for its response against the coronavirus outbreak, after imposing an additional 10% import duty on crude oil and refined petroleum products.

Energy Undersecretary Felix Fuentebella said during a virtual press briefing on Wednesday, May 13, that the additional tariffs would result in an increase of P0.60 per liter for gasoline and P0.84 per liter for diesel.

The Department of Energy (DOE) said the new rates would be implemented only for new inventories.

These would be reflected in pump prices in the latter part of May, meaning price hikes for consumers.

Local fuel prices are expected to rise next week, but the DOE noted that this is not yet due to the new tariffs. Rather, increases would be due to global oil prices stabilizing after plummeting to record lows. (READ: TIMELINE: The oil market’s 6-week plunge)

Gasoline prices went up by P2 per liter, diesel by P1.90 per liter, and kerosene by P1.25 per liter on Tuesday, May 12, as global prices stabilized.

Fuentebella said collections from the new tariffs would be used to support the services of the Department of Health.

On May 4, President Rodrigo Duterte had signed Executive Order No. 113, which seeks additional funding for the country’s coronavirus response.

The order will cease to take effect when oil prices rise to a certain level, details of which have yet to be released. – Rappler.com