MANILA -- Pump prices in the Philippines will go even higher when another oil price hike takes effect Tuesday (May 29).
This is set to happen amid calls to suspend excise taxes levied on petroleum products to mitigate surging local prices which was triggered by a lingering volatility in the world crude market.
In text messages to journalists, local oil firms announced a PHP 0.65/liter increase in unleaded gasoline, PHP 0.35/liter in diesel and PHP 0.45/liter in kerosene. This is still notably less than increases implemented in the past two weeks, both exceeding PHP 1/liter.
Meantime, the Department of Finance (DOF) stated that the TRAIN law is not the main culprit behind the recent surge in pump prices, but "the geopolitical conditions in the Middle East, as well as other global economic factors".
An industry observer said that apart from the movements in the international petroleum market, the weakening of Philippine peso also affects oil price adjustments.
Legislators have called for the suspension of the TRAIN law on petroleum products as a temporary measure to moderate the impact of soaring oil prices.
The DOF said this may be possible only if the price of Dubai Crude keep going up, and hits USD80 per barrel. However, it will likely take effect in 2019 because a midyear suspension will give rise to other problems. (PNA)
