P7 diesel price cut seen; LPG/kerosene excise tax suspended

MANILA, Philippines — Easing supply concerns are expected to offer relief at the pump next week following three consecutive rounds of increases. Industry forecasts point to a potential price drop of P7 to P7.50 per liter for diesel and P0.50 to P1 per liter for gasoline on Sept. 29. The estimates were based on four-day movements of foreign exchange rates and the Mean of Platts Singapore, a regional pricing benchmark for refined petroleum products. Jetti Petroleum president Leo Bellas said oil prices declined this week on hopes for diplomatic progress in the Middle East war, as world leaders gathered for the United Nations General Assembly. The recovery of oil shipments from Saudi Arabia also helped ease prices. The slow progress in diplomatic efforts to end the US-Iran war, however, has continued to keep prices elevated. The closure of the strategic Strait of Hormuz, a key shipping route that typically carries about 20 percent of global oil and gas supplies, has also kept markets on edge. President Marcos yesterday suspended the excise taxes on liquefied petroleum gas (LPG) and kerosene amid rising oil prices. Executive Order 125 removes excise taxes on LPG, except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel. “Within 15 days from the issuance of this order, and every month thereafter, the DBCC (Development Budget Coordination Committee), in coordination with the DOE (Department of Energy), shall review the implementation of the suspension of excise taxes and submit a report to the House of Representatives and the Senate, in accordance with RA (Republic Act) No. 12316,” the EO said. The DBCC has recommended the full suspension of excise taxes on LPG and kerosene after the DOE certified that the average Dubai crude oil price based on MOPS covering the last 30 calendar days has reached $99.41 per barrel. Under Section 1 of RA 12316, the President, upon the recommendation of the DBCC, may temporarily suspend or reduce the excise tax on petroleum products when the average Dubai crude oil price based on MOPS reaches or exceeds $80 per barrel for a one-month period. — Helen Flores, EJ Macababbad, Josiah Antonio