DOE monitoring old fuel stocks to ensure no profiteering from companies

The Department of Energy (DOE) is closely monitoring the inventory of oil companies to ensure no one will take advantage of the new excise tax on petroleum products under the Tax Reform for Acceleration and Inclusion law.

“We will focus on monitoring and implementation ... Our efforts are towards transparency. Secure data on inventories and monitor closely,” Energy Undersecretary Felix Fuentebella told GMA News Online on Tuesday.

The DOE clarified earlier that the new excise tax rates will not affect prices of old inventory, considering that excise taxes are levied upon importation and not at the point of sale to consumers.

“For those retailers that still have old stocks, meaning prior to January 1, no excise tax yet. For those retailers with new stocks, meaning January 1 onwards, applicable na ang excise tax,” Fuentebella emphasized.

“Posting will be required on the retail level to announce when excise taxes are applied already,” he said.

Under the recently approved tax reform law or Republic Act NO. 10963, diesel gets an excise tax of P2.50 per liter from zero while the the excise tax on gasoline rises to P7 from P4.35.

The excise tax rates on diesel will go up to P6 per liter come 2020, and on gasoline to P10.

Fuentebella said the DOE will meet oil companies on Wednesday to determine their old inventories which are not covered by the new excise tax rate. — VDS, GMA News