Fuel tax collections up 15% amid transport protests
MANILA, Philippines — Fuel tax collections surged during the recent oil price spike amid criticism from transport groups who are calling for cuts in VAT and excise taxes as the government rolls out limited subsidies.
Data from the Bureau of Customs showed duties and taxes on fuel imports rose 15% to P37.11 billion from March 2 to April 10, despite only a slight increase in import volume.
Jeepney group Piston said the government’s planned P10-per-liter fuel subsidy is insufficient, arguing that higher taxes continue to drive pump prices.
“If the government can give discounts, why can’t they address the concern of VAT and excise tax so not only one sector can benefit but all the people will benefit,” Piston national president Mody Floranda told The STAR.
The Philippines, which imports nearly all of its fuel, remains vulnerable to global supply disruptions, with the Middle East conflict affecting shipments through the Strait of Hormuz.
Malacañang said President Marcos may announce as early as Monday, April 13, whether he will suspend or reduce excise taxes on petroleum products.
“Most probably, yes. April 13,” Palace press officer Undersecretary Claire Castro said in an interview with dzMM when asked if the president would make an announcement.
Revenues rise despite volume shifts
Total fuel import volume edged up by 1% to 2.99 million metric tons during the period, from 2.96 million MT a year earlier, largely driven by higher crude oil shipments.
Despite a 4% decline in diesel imports to 1.09 million MT, duties and taxes collected from diesel rose 14% to P16.24 billion, reflecting higher assessed values.
Crude oil imports climbed to 1.14 million MT, with tax collections surging 68% to P5.92 billion.
Other imports included gasoline at 604,104.62 MT (P13.43 billion in duties and taxes), liquefied petroleum gas at 81,374.60 MT (P641.35 million), jet fuel at 69,690.75 MT (P769.23 million), kerosene at 6,447.57 MT (P105.73 million), and aviation gas at 410.71 MT (P6.74 million).
From January 1 to April 10, total fuel imports reached 6.84 million MT, generating P83.41 billion in duties and taxes.
The tax increase comes as the government rolls out on Tuesday, April 14 a P10-per-liter aid for jeepney drivers, capped at 150 liters per week, in a pilot program in Metro Manila.
At the same time, officials are projecting a rollback in fuel prices this week, with diesel expected to drop by more than P20 per liter following a fragile ceasefire in the Middle East. — based on reports from The STAR
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