DOE warns suspension of oil excise tax if global price hike continues
Marje Pelayo • September 18, 2019 • 569
MANILA, Philippines – The government may suspend the implementation of excise tax in oil products if global prices continue to soar in the coming months as a result of the recent drone attacks on two large oil facilities in Saudi Arabia.
According to the Department of Energy (DOE), they cannot tell yet as to how much the price hike may be because it will depend on the trading price in the world market.
Nevertheless, Energy Secretary Alfonso Cusi assured that local oil companies have enough supply of oil which can last up to 30 days.
In the event that oil prices soar, excise tax in oil may be suspended as provisioned in the Tax Reform for Acceleration and Inclusion (TRAIN) Law 1.
“Meron tayo dyan na safety net na sinasabi na kapag yung presyo ng langis in the world market, yung pag-aangkat natin breaches the 80 dollar per barrel in 3 consecutive months, we might intend to suspend excise tax,” Cusi explained.
But the official noted that as of now, there is a slim chance for the price hike, especially so that Saudi Aramco has announced to resume its normal operation in September.
Meanwhile, the DOE is also preparing for the possible adverse effect of the oil price hike to the impeding maintenance shutdown of Malampaya Power Plant next month.
Once the Malampaya is shut down, power distributors will have to buy electricity from oil-powered plants which may still lead to a power rate increase.
“Iyan pinag-aralan na natin iyan. Number 1, we want to make sure that there will be no power interruption because of the maintenance. Number two, that there will be no spike in price because of the maintenance,” Cusi said.
“Kaya lang syempre itong misbehavior ngprice in the world market, talagang pagsipa noon mapi-feel natin,” he added.
Aside from diesel power plants, coal and hydropower plants are among the alternative power sources that the government is eyeing. – MNP (with details from Joan Nano)
Oil companies have announced an oil price hike that will take effect on Tuesday (December 15).
In separate advisories, Shell, Clean Fuel, and Petro Gazz announced that they will increase their gas prices by P0.50 per liter and P0.60 per liter for diesel.
Meanwhile, Shell will also up their Kerosene prices by P0.55.
Shell and Petro Gazz will implement the price hike at 6:00 a.m., while Clean Fuel will implement the price hike at 4:00 p.m.
The Department of Energy (DOE) report said gasoline prices have increased by P3.47 per liter as of December 1. Diesel prices, on the other hand, increased by P7.76 per liter and kerosene prices went up by P11.19. —AAC
The 12th batch of distressed Overseas Filipinos (OFs) from the Kingdom of Saudi Arabia (KSA) arrived in the Philippines on Thursday (October 15), according to the Department of Foreign Affairs (DFA).
A total of 341 distressed OFs arrived at the Ninoy Aquino International Airport (NAIA). The repatriates already underwent COVID-19 RT-PCR testing and will be staying under hotel quarantine until their test results come out negative.
The DFA began its mass repatriation efforts in February to assist OFs affected by the coronavirus disease (COVID-19) pandemic.
The DFA has already repatriated more than 4,200 Filipinos from Riyadh and the eastern regions of the Kingdom of Saudi Arabia. AAC
MANILA, Philippines – The Philippine Navy is looking to convert Nido and Matinloc, two former gas platforms located near Recto Bank, into floating monitoring stations due to their strategic locations.
PH Navy Flag Officer In Command Vice Admiral Giovanni Carlo Bacordo bared the plan when he visited the gas platforms in Malampaya, northwest of Palawan on Sept. 26.
“This inspection intends to look at the viability of these retired gas platforms to be converted to observation posts for Recto Bank and Malampaya gas platform,” Bacordo said in a statement.
“This will further enhance our capability to protect our maritime interests in these strategic locations,” he added.
The platforms location is deemed to be “strategic” and “vital” due to its proximity to Recto Bank, Malampaya and Galoc Gas Fields.
The Malampaya Gas Field is located 820 meters deep, 80 kilometers off the coast of Palawan which falls under the area of responsibility of Naval Forces West.
The Department of Energy (DOE) last year ceased the operations of these two gas fields after over 40 years of production.
The PH Navy said the transfer of ownership of these platforms was offered by the DOE in several meetings of the military’s National Task Force in the West Philippine Sea.
“It is the DND’s position to acquire said platforms and expeditiously transfer it to the Armed Forces of the Philippines (AFP),” it said.
The navy said the future littoral monitoring station is a welcome addition to its “improving capabilities” to better serve our maritime nation especially in its critical location near the nation’s source of natural gas.
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