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The Department of Energy certified that the one-month average price of Dubai crude oil has breached the US$80-per-barrel threshold required by law for the government to consider suspending excise taxes on petroleum products
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The August 13-September 11 average was US$99.41/barrel, well above the statutory threshold
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The certification follows steep domestic fuel price increases for September 15-21, with gasoline up P5.68/L, diesel P4.31/L, and kerosene P4.62/L
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The Development Budget Coordination Committee can now recommend fuel excise tax suspension or reduction to the President
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DOE said the country has adequate petroleum inventories, with gasoline and diesel stocks at more than 57 and 60 days, respectively, as of September 11
The Department of Energy (DOE) has certified that the one-month average price of Dubai crude oil breached the US$80-per-barrel threshold required by law for the government to consider suspending or reducing excise taxes on petroleum products.
The certification, the DOE said in a press statement, follows a sharp jump in domestic pump prices from September 15 to 21. Gasoline increased by P5.68 per liter, diesel by P4.31, and kerosene by P4.62, due to ongoing rises in international oil prices.
The average benchmark price of Dubai crude from August 13 to September 11 stood at US$99.41 per barrel, exceeding the US$80-per-barrel threshold prescribed under Republic Act No. 12316.
With the DOE certification formally transmitted, the matter may now proceed to the Development Budget Coordination Committee (DBCC) for consideration.
“We know that every increase at the pump affects more than the cost of filling up a vehicle. It affects the daily budget of families, the livelihood of our drivers, and the operating costs of businesses. The DOE has completed the certification required under the law, and we will continue working with the government’s economic team on measures that can provide relief to consumers,” Energy secretary Sharon Garin said.
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Under RA 12316, the President, upon the recommendation of the DBCC and in coordination with the energy secretary, may suspend or reduce the excise tax on fuel when the average Dubai crude oil price based on the Mean of Platts Singapore reaches or exceeds US$80 per barrel for the month immediately before issuing a suspension or reduction order.
The law allows the suspension or reduction of excise taxes on specific petroleum products, either in full or in part, for a period not exceeding three months.
The certification does not automatically trigger a tax reduction or suspension but fulfills a key requirement for the process provided under the law.
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Meanwhile, the DOE said the country continues to maintain adequate petroleum inventories despite upward pressure from international oil prices.
As of September 11, the country had an estimated 57.17 days of gasoline supply, 60.80 days of diesel, 124.57 days of kerosene, 60.56 days of jet fuel, 42.29 days of fuel oil, and 39.27 days of liquefied petroleum gas.
The government is also continuing targeted assistance for the public transport sector. As of September 9, P718.10 million in fuel subsidies had been availed of by 102,356 public utility vehicle beneficiaries, with successful transactions recorded across 3,574 gasoline stations nationwide.
