If you thought you were done adjusting to the fuel price hikes that resulted from the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law, then you thought wrong. The third and final tranche of the excise tax increases on fuel will take effect tomorrow, January 1, 2020.
There will be an increase in excise tax per liter of gasoline, diesel, and kerosene, as well as an increase per kilogram of liquified petroleum gas (LPG). See the list below for a more detailed view:
New fuel excise-tax rates effective January 1, 2020:
- Gasoline – P10/L (P1 increase)
- Diesel – P6/L (P1.50 increase)
- Kerosene – P5/L (P1 increase)
- LPG – P3/kg (P1 increase)
Take note that once these new tax rates take effect, the resulting retail prices will still be subject to the 12% value added tax. You can also check out the official document through this link and refer to pages 50-59.
What’s your take on the matter? By the looks of it, it seems like we motorists are in for a tougher year ahead. You might as well brush up on some of these fuel-saving tips to help you get ready for the new year—it’s the least we can do to mitigate these price increases.