DOE Watching Oil Firms to Prevent Profiteering

(Taguig City). Energy Secretary Alfonso G. Cusi today assured the public that the Department of Energy is keeping a close watch over oil firms to prevent possible profiteering over the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN).

For this purpose, Cusi bared that the DOE has invited the oil companies to a meeting on Wednesday morning (3 January 2018) in its headquarters to clarify the mechanisms in the implementation of the new tax law.

Cusi stressed that the additional excise tax on fuel under TRAIN should not affect the prices of old stocks of oil firms, including their stocks under the 15-day Minimum Inventory Requirement.

“As directed by President Duterte, the government taxes should not profit the companies, because these are all intended for the services of the government to the public and the public alone.”

Cusi said that to the credit of the oil companies, they willingly agreed to submit their stock inventories as of the cut-off date (31 December 2017) under a notarized document to be submitted to the DOE.

The oil companies also concurred to share their data regarding their sales to the dealers/retailers to determine which stocks will be applied with the Excise Tax.

For further transparency, the oil companies will also require their retailers to post what the products will be charged with Excise Tax and when it will be implemented.

Cusi said the DOE and other relevant government agencies would conduct random audit and monitoring activities on the compliance with TRAIN, both in the depot/refinery and the retail level or gasoline stations.

The DOE calls on the public to be vigilant and to report any violation to or to Consumer Welfare and Promotion Office at tel. no. 479-2900 loc. 329.