Gas up today

Got a New Year Ride planned? Better gas up now as the third (and final) tranche of excise tax rates under the TRAIN law will soon be taking effect on all petroleum products.

This means that, effective January 1, 2020, the new tax rates for petroleum products will be implemented. With it, a Php 1.00 tax hike per liter will go into effect across all petroleum-based products.

Unleaded gasoline, which is currently taxed at Php 9.00 per liter/kg, will be levied at Php 10.00 starting next year.

This isn’t just for fuel. The same excise tax will be applied to lubricating oils and greases, processed gas and waxes/petrolatum. From the current Php 9.00 per liter/kg, it will go up to Php 10.00 in 2020.

Of course, to stop it from going to high in case there is a crude oil shortage, there are protections in place. A provision under the law (RA 10963) provides protection, should average crude oil price based on Mean of Platts Singapore (MOPS) reach or exceed $80 per barrel, the scheduled increase in the excise tax on fuel shall be suspended for three months prior to the increase of the month. With the average price of crude oil at around $61 per barrel, the third and final tranche of the excise tax on fuel will definitely go into effect.

Also note that increases on pump retail prices should not directly take effect on January 1, 2020; as the new levies will only affect supply imported starting 2020.