Oil prices may fall in the last week of January.
Based on the first 4 days of trading, oil prices dropped by the following amounts:
Gasoline – P1.18/L decrease
Diesel – P0.25/L decrease
Kerosene – P0.31 decrease
Jetti President Leo Bellas said the dip in prices can be attributed to US President Donald Trump’s announcement that the US will produce more fossil fuels like crude. Trump’s planned additional tariffs on several products from big US trading partners may also affect economic growth, which can lead to lower fuel demand.
Some transport groups meanwhile have called for the removal of the excise tax and value-added tax on fuel products.
Based on data from the Department of Energy, the excise tax for gasoline is P10 per liter, P6 per liter for diesel and P5 per liter for kerosene.
The 12 percent VAT imposed on the overall retail price is also considerable. For example, if gasoline or diesel is at P60/liter, the VAT is around P5.60/liter. This means that the excise and VAT comprise around 25 percent of the total retail price of fuel products.
But Department of Energy Director Rino Abad said removing these taxes rests with Congress and the revenues raised fund important government projects.
