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Industry > Business

Should we expect fuel price increase by January 1st?

The Department of Finance emphatically says no

In 2018, gasoline and diesel will be taxed P7.00/L and P2.50/L, respectively. ORIGINAL IMAGE FROM SHELL

You may have heard that fuel prices are bound to go up after the approval of the Tax Reform for Acceleration and Inclusion Act. Under the revised taxation scheme, previously untaxed diesel oil will have the following excise duties in the next three years:

  • P2.50/L in 2018
  • P4.50/L in 2019
  • P6.00/L in 2020

Meanwhile, regular and unleaded gasoline fuels, which were previously taxed P4.35/L, will have the following excise duties during the same period:

  • P7.00/L in 2018
  • P9.00/L in 2019
  • P10.00/L in 2020

The question on every motorist’s mind right now is this: Are we to expect an immediate increase in fuel pricing come January 1, 2018? The answer, according to the Department of Finance, is no.

Show this advisory to the fuel station's manager if you feel you're being overcharged on January 1st. IMAGE FROM DEPARTMENT OF FINANCE

In an advisory posted to its Facebook page today, the DOF says the price increase shouldn’t take effect immediately “as it takes a few days for the 2017 oil stock to be used up.” In other words, what car owners will be buying at fuel stations in the coming days has already been levied using the outgoing taxation scheme. The DOF adds that petroleum companies that will jack up its fuel prices on the first day of the new year could be guilty of profiteering.

“Be vigilant,” the DOF encourages the public.

The government department, however, has not spelled out concrete steps that people can take should they suspect a fuel station to be taking advantage of the situation. We guess we can all just take photos—the pricing signs, the receipt, the fuel station itself—and send these to authorities with our specific complaint. Good luck.



Vernon B. Sarne

Vernon is the founder and editor-in-chief of VISOR. He has been an automotive journalist for 23 years. He became one by serendipity, walking into the office of a small publishing company and applying for a position he had no idea was for a local car magazine. The rest, as they say, is rock and roll.



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