DOE: New excise tax rates do not apply to old stocks of petroleum products

The Department of Energy (DOE) on Sunday clarified that the new excise tax rates will not affect the prices of petroleum products during the first weeks of 2018.

In its advisory, the DOE said retailers should not charge the new excise tax on old stocks.

“The OIMB (Oil Industry Management Bureau) has issued an advisory to petroleum products stakeholders not to levy new excise tax rates on old stocks, considering that excise taxes are levied upon importation and not at the point of sale to the consumers,” Assistant Secretary Leonido Pulido III said.

For VAT, the new rates under the new tax reform law that are applicable to consumers becomes effective on Jan. 1, 2018, Pulido added.

On Saturday, the DOE issued an advisory on the possible hike in the prices of fuel products.

Gasoline prices may increase by P0.15 per liter, diesel by P0.60 per liter and kerosene by P0.55 per liter.

It said the projected price adjustments are based on last week's international oil traiding.

The DOE, meanwhile, reiterated that "price freeze" on kerosene and household liquefied petroleum gas (LPG) should be observed in calamity areas.

Thirteen areas have been placed under state of calamity due to the devastation brought by tropical cyclone Vinta. —Anna Felicia Bajo/ALG, GMA News