DOE to recommend possible suspension of excise tax on fuel

The Department of Energy (DOE) on Saturday said it will recommend the suspension of excise tax on petroleum products if the average price of crude oil will reach $80 per barrel under the Tax Reform for Acceleration and Inclusion (TRAIN) law, as prices of goods and commodities continue to increase.

"'Pag po nagkaroon ng tatlong buwang sunod-sunod na average ng crude oil na halaga na $80 per barrel, oras na magkaroon ng ganu'ng average, ang DOE sa kanilang pangunguna ay irerekomendang i-suspend na ang [pagpataw ng excise tax sa] TRAIN Law... sa Department of Finance," DOE undersecretary Donato Marcos said in a Super Radyo dzBB interview.

In response to the spiking prices of fuel, the department has previously announced it was issuing a new policy that will require oil companies to "unbundle" or detail the price adjustments it made on petroleum products.

Marcos said gasoline stations caught irregularly increasing petroleum products will be shut down.

"Halimbawa sa mga pumping station, 'pag sila ay overpricing o sumusobra, lalo na ang mandato ay 'yung quality at quantity ng nasabing produktong petrolyo, awtomatiko pina-padlock namin kapag nakita namin 'yon, lalo't walang quality," he said.

Malacañang earlier announced the government is looking into cheaper options of sourcing fuel for the country, including solutions offered by stakeholders outside the Organization of Petroleum Exporting Countries (OPEC).

Marcos said the DOE has mandated the Philippine National Oil Company (PNOC) and PNOC Exploration Corporation (PNOC EC) to draft a resolution seeking to implement and establish a specific petroleum reserve where imported petroleum products could be stocked.

He said the petroleum products will be used nationwide should there be a crisis.

Marcos cited the spike in international oil prices and increase in dollar as "uncontrolled factors" considered by the government. — Jamil Santos/MDM, GMA News