DOE warns oil companies on price hikes due to TRAIN

Department of Energy (DOE) is monitoring the oil companies’ price movement relative to the Tax Reform for Acceleration and Inclusion (TRAIN) Act as hike was effective on January 15.

According to DOE, there will be an “inspection team” from Oil Industry Management Bureau so they can manage the violations of some companies against the tax reform law.

“A team of inspectors from the department’s OIMB has been deployed to randomly inspect the inventory of gasoline stations and depots for proper oil excise tax implementation.” the agency said.

The reason for the inspection is that some gasoline stations are already posting signage’s imposing increase in oil price hike – mainly because of inventories of some fuel products being retailed at gas pumps.

Given the situation, DOE is already examining oil companies as to why they already implemented oil price hike when it is still ineffective yet.

“In a way right now again based on documents kami so that’s our reference… we already issued a directive so all oil companies are aware of that directive and we anticipate that these directives are all disseminated in all their dealers,” DOE Science Research Specialist Chief Renante Sevilla said, as the department admits that they are having a hard time in inspecting gasoline stations.

As of today, out of 200,000 gasoline stations in Metro Manila, more than 50 have already implemented this increase in their fuel products.

DOE said that those companies who will fail to follow the government’s order will face charges. Cancellation of their certificates of compliance will be the result of committing violations or offenses against the implemented act.