The Department of Energy (DOE) has formulated a team of inspectors to keep tab on the inventory of gasoline stations and depots for proper oil excise tax implementation.
The team from the Department of Energy’s Oil Industry Management Bureau (OIMB) were formulated to properly verify if the excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Act is properly implemented on inventories beyond those existing as of December 31, 2017.
In an interview with DZRH’s Damadaming Bayan, DOE Usec. Wimpy Fuentebella said that oil companies are not yet allowed to increase their prices given their remaining inventory.
According to Fuentebella, oil companies have at least 15 days worth of stock in their inventory, meaning oil prices are not allowed to surge until all old stocks run out at about the third week of January.
Fuentebella also shared that Energy Secretary Alfonso Cusi has already aired his warning against any companies that will violate the TRAIN law.
The DOE said that violators may be administratively subjected to the cancellation of their Certificates of Compliance (COC) if they fail to cooperate with the agency and present requested documents.
Criminal cases such as estafa and profiteering may also be filed in court for violations of the Oil Deregulation Law and the Revised Penal Code.
Similarly, the Department of Trade and Industry has also sent teams to watch over the prices of goods and commodities and to assess the proper implementation of the TRAIN Act.