Recommendation to suspend additional fuel excise tax next year remains, DOF official says
The recommendation of the economic managers to suspend the additional fuel excise tax in January remains despite the series of oil price rollbacks the past weeks, an official of the Department of Finance said on Wednesday.
This as the Energy Secretary Alfonso Cusi said that the price of Dubai oil is projected to be at $70 per barrel level in the coming months.
"As you know, the economic managers submitted their recommendation to suspend the next tranche of the increase in excise scheduled for January 2019. That recommendation stands," DOF Assistant Secretary Antonio Joselito Lambino II said in a press briefing in Malaca?ang.
But in order that it could be implemented, he said the Office of the President should issue an official document.
"That recommendation was made when the price per barrel for Dubai crude and MOPS (Mean of Platts Singapore) was above $80. And the future markets also showed $80 and above for November and December," he said.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, the government could suspend the additional P2-excise tax on oil beginning January next year if the average Dubai crude oil price based on MOPS for three months prior to the scheduled increase of the month reaches or exceeds $80 per barrel.
But Cusi, in the same briefing, said that based on the forecast of the producing and exporting countries, the prices of oil could be at the $70 per barrel level in the coming months.
"If I would just share with you what the forecast for the coming months, it said that it would remain at the 70 (dollar) level?I mean, low 70s (dollars) and the high 70s (dollars)," he said.
He said the government expects further price cut in local pump prices by next week.
Since there is already a recommendation for the suspension of additional excise tax on oil in January next year, Lambino said, "Ideally, what we want to do is to review the recommendation after it is implemented ? so, at some point next year." Celerina Monte/DMS