Sunday, November 04, 2018

Energy 116, Cheaper oil but rising oil tax

The good news is that recently, world oil prices are falling and peso depreciation has stopped so domestic oil prices are falling. World coal prices are falling too (In 2017, 50% of total PH electricity supply came from coal power plants).

The bad news is that oil and coal tax hikes part 2 under TRAIN law will proceed in January 2019 or two months away. Dutertenomics and TRAIN law believe that cheap oil, cheap electricity is bad so they raised the taxes to make oil and electricity prices become more expensive.

And while Malacanang earlier announced that they will suspend part 2 excise tax hikes by January, DOF also announced that they may not suspend part 2 tax hikes. Any suspension is only for electioneering purpose, after the May 2018 mid-term elections, they will resume part 2.

See also:
Energy 113, First Gen/EDC's anti-coal drama, September 23, 2018 

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