The Department of Energy (DOE) told oil firms that they will be checking for the correct application of higher excise taxes to avoid taxing old stocks.
“DOE may have the option to check your importation notices to check compliance,” the DOE was quoted in a Manila Bulletin report.
The energy department advised “that pump prices should only reflect stocks that have actually had the new excise tax rates imposed.”
Old stocks should be sold on the the old excise tax rate, explained the DOE.
DOE has required oil companies to submit data on their inventories up to December 31, 2019 to keep track of oil products inventories.
“Concerned oil companies, owners, operators or lessees of storage depots, as well as producers and importers of denatured alcohol for motive power/bioethanol fuel shall submit duly notarized inventories of all petroleum products and denatured alcohol/bioethanol fuel as of midnight of December 31,” as DOE ordered.
The final tranche of excise tax on fuel will mean a P1.00 per liter for gasoline or P1.12 per liter with the inclusion of value added tax (VAT); P1.50 per liter for diesel (or P1.68 per liter with VAT); and P1.00 per liter for kerosene (or P1.12 per liter with VAT).
The first round of the excises taxes hike was in 2018, while the second round was in January last year.
The third round of excise tax implementation coincides with the sudden increase in the world market due to the rising tension between the United States and Iran.