[ad_1]
Philippines increases oil tariffs by 10% as prices fall on the international market
RATES A gas station in Manila. File photo of Darren Langit / Rappler
MANILA, Philippines – President Rodrigo Duterte temporarily imposed an additional 10% tax on imported crude oil and refined petroleum products to finance the government’s pandemic coronavirus response.
Duterte’s Executive Order (EO) No. 113, signed on Saturday, May 2, imposed higher oil tariffs as the government seeks more cash for its handouts and economic recovery programs.
The modified import duty rates will immediately return to zero if oil prices on the international market rise.
The EO said the trigger price will be determined by the Department of Energy (DOE). The Department of Finance (DOF) would also be notified of the trigger. The Customs Office (BOC) will issue a memorandum order to reverse the rate.
The DOE, in coordination with the DOF, BOC, the Department of Commerce and Industry and the National Authority for Economy and Development, will issue guidelines for the implementation of the reversal.
Duterte’s order comes as oil prices drop to record lows due to oversupply caused by tepid global economic activity. (READ: How can oil prices be negative?)
The Philippines imports almost all of its oil requirements.
Acting Secretary for Socioeconomic Planning Karl Chua previously said that low prices in the global market benefit the Philippines. – Rappler.com
[ad_2]
