Tags: Oil deregulation law

Excessive oil price hikes under deregulation worsen TRAIN impact

Looking at the local oil price movement from the start of the year up to May 15, the price adjustments in diesel may have been “excessive” by about P1.03 per liter and gasoline by P1.34 centavos per liter. This resulted in about P53.74 million additional collections every day from diesel and gasoline products for the oil companies. Of this amount, P6.45 million daily go to the Duterte government’s oil VAT collections (on top of its additional revenues from the TRAIN law’s oil excise taxes).

“As it turned out, the price freeze was just meant to temper public outrage over the shameless greed displayed by oil firms after hiking petroleum prices during the height of the flooding and devastation brought by the monsoon rains. In the end, oil firms simply could not moderate their greed.” – CAOPI