MANILA — Cooking gas prices will still go up even if Malacañang decides to suspend the excise tax on liquefied petroleum gas (LPG) and kerosene soon, a stakeholder said on Thursday.
Finance chief signs reso on suspension of excise tax on LPG, kerosene
The Department of Finance already recommended the temporary suspension of the excise tax, but only for LPG and kerosene, and not for diesel and gasoline.
The excise tax on LPG is P3.00, but with VAT, it goes up to P3.36/kilo. For kerosene, it's P5.00, but it's P5.60 with VAT.
Regasco President Arnel Ty said the previous projection of a P10/kg to P25/kg increase went down to P10-P15/kg due to the softening of crude prices.
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According to Ty, even if the excise tax on LPG is removed, there will still be a price hike of around P4/kg, assuming the increase will stay at P10/kg.
The LPG group, said Ty, is willing to stagger the increase if the Department of Energy is going to request them to do so.
Currently, LPG prices range from P1,200 to P1,400 per 11kg tank, but with the looming P10/kg hike, the suggested retail price will go up to more than P1,300 to P1,500 per regular tank.