DOE clarifies: oil price hike not related to govt’s 2nd tranche of TRAIN fuel excise taxes

The recent price hike being implemented by oil companies has nothing to do with the second tranche of excise taxes under the Republic Act no. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN law).

According to Rodela Romero, assistant director of the Department of Energy-Oil Industry Management Bureau, the oil price movement in the international market in the last two weeks have caused the local oil companies to implement price adjustment.

Karamihan kasi sa atin mga importers talagang two weeks bago dumating ang finished product. Hindi talaga iyon presyo ngayon yung na-monitor namin ngayon,” Romero explained during DZRH’s Isyu.

For the past two weeks versus the previous week, iyon ang iniimplement natin this week,” Romero added.

According to Romero, the world market increased the price of crude oil due to the announcement of the Organization of the Petroleum Exporting Countries (OPEC) that they will cut production from January to June.

Nag-react na yung merkado, nagkaroon na ng speculation talaga na yung dami ng supply mawawala na iyon kaya nag-sisimula yung pag-taas,” Romero said.

Aside from the prices in the international market, the DOE official mentioned that domestic oil companies are also influenced by their business costs.

Romero added that oil companies need to exhaust their stock, which should last at least 15 days, since Dec. 31 before increasing the price of their petroleum products based on the second tranche of fuel excise taxes.

Meron tayong requirement na minimum inventory of at least 15 days. Itong 15 days for all products iyan. Maaring may maunang diesel, may maunang gasoline,” Romero explained.

Romero also said that only a small number of oil companies have informed DOE that they will implement price adjustments due to the second tranche of fuel excise taxes.

She added that fuel stations need to notify the public regarding their price hikes.

Dapat kapag nag-taas ang gasolinahan makakakita kayo ng tarpaulin na sinasabi nila na merong kadagdagan adjustment ang ganitong klaseng produkto dahil sa excise tax,” Romero added.

“Kung wala yung gaanong tarpaulin na ni-require ng DOE ibig sabihin lumang imbentaryo ang ginagamit pa nila,” the Energy official said.

Meanwhile, Romero assured that the DOE is closely monitoring local oil companies to prevent abuse.


  1. The problem of oil price, the government have no direct control of pricing in domestic under RA 8479 otherwise known the deregulation law in the oil industry, if we want price to be effective monitor and control, the RA 8479 must be amended on soonest time and needs congressional approval. DOE could not even conduct the periodical examination of stock inventory in the shore tanks/farm tanks. there power vested in RA 8479 is very limited, only monitoring of quality and quantity for energy security. Dapat DOE initiated the amendment of the RA 8479. the law is soft and toothless. that’s the reality.

  2. whats the point to continue imposing the excise tax in refined petroleum products, if the leakages of cargo volume is continue in the port that led to technical smuggling. The Fuel marking that slate Php 2.0 billion from tax payers money by BIR and BOC, is not guaranty to stop smuggling that government is losing Php 40 billion of taxes annually in the oil industry. There several parameters of leakages in the ports that maybe, BIR and BOC were able to mislook the lapses. My suggestion, BIR and BOC must have to re-study the fuel marking project before its implementation, otherwise its waste of tax payers money. I’m formerly Marine Cargo Surveyor for petroleum products doing actual tank calibration onboard the foreign flag tanker discharging petroleum cargo in the Philippine ports, including examination of shore tanks for current oil stock inventory.

  3. Hidelito M. Sisona

    The Fuel Marking that alloted Php 2.0 billion by BIR and BOC will not stop oil smuggling. Herewith the possible leakages.
    1. How will they address the oil leakages in the bulk terminal?
    2. How will they address the oil leakages in the Foreign Flag Tanker discharging petroleum cargo?
    3. How will they address the private whart that used to stored smuggled oil?
    4. How will they address the ool leakages jn ROB of tanker that are part of declaration in the shipping documents?
    5. How will they address the oil.leakages in the domestic registered tanker vessel that utilised to transport imported petroleum products domestic consumption?
    6. How will they address the customs bonded storage?
    7. How will they address the fuel leakages in freeport and special ecozone?
    8. How will they address the proper documents of oil import including its proper calculation according to international oil practices in the industry?
    I have notice, the project is disadvantageous to government, and an additional burden to the consumers to pay additional of Php. 0.30 per liter in service provider. Excise tax, Evat, storage cost, transport and fuel marking cost? Its very unfair to the consumers? Sino ba ang kumita dito?

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