Wholesale Posted Price Computation and Background
- The average wholesale posted price ex-Pandacan at issuance was ₱7.4190 per liter.
- This was computed from the July 1, 1996, base of ₱6.8893 plus cost recovery for imported crude increase of ₱1.3436, minus weighted average increase of ₱0.8138 during transition and deregulated period.
Legislative and Executive Developments Impacting Pricing
- Republic Act No. 8184 (June 11, 1996) restructured the excise tax on petroleum products, introducing socialized pricing.
- Executive Order No. 365 (August 28, 1996) removed special levies of ₱0.95/liter for imported crude and ₱1.00/liter for imported petroleum products, integrating them into the restructured taxes.
Protection of Socially Sensitive Products
- To protect national interests, price increases on socially-sensitive products (Automotive Diesel Oil, Industrial Fuel Oil, Kerosene) were minimized.
- Oil companies were directed to contribute or withdraw specific amounts to or from the Oil Price Stabilization Fund effective January 16, 1998:
- Premium Gasoline: ₱0.5933/liter
- Unleaded-Premium: ₱0.3050/liter
- Regular Gasoline: ₱0.3069/liter
- Avturbo: ₱1.0725/liter
- Kerosene: -₱0.4407/liter (withdrawal from fund)
- Diesel Oil: -₱0.3915/liter (withdrawal from fund)
- LPGas: ₱0.6798/liter
- Average impact on fund: zero
Authorized Wholesale and Retail Price Adjustments
- Authorized adjustments to wholesale posted prices ex-depot as of August 9, 1996 per ERB Resolution No. 96-19:
- Premium Gasoline: ₱3.7379/liter
- Unleaded-Premium: ₱3.0584/liter
- Regular Gasoline: ₱2.6234/liter
- Avturbo: ₱1.0129/liter
- Kerosene: ₱0.3499/liter
- Diesel Oil: ₱1.2340/liter
- Fuel Oil/Feedstock: ₱1.0416/liter
- LPGas: ₱0.8409/liter
- Authorized Metro Manila retail prices of dealers ex-gasoline station (per liter):
- Premium Gasoline: ₱13.30
- Unleaded-Premium: ₱12.62
- Regular Gasoline: ₱11.68
- Kerosene: ₱7.44
- Diesel Oil: ₱8.33
Retail Price Computation Outside Metro Manila
- Prices outside Metro Manila are computed by adding wholesale posted price ex-depot, dealer’s markup, and hauling/freight charges to the locality.
- Additional components affecting pump prices include Company Transshipment Differential (CTD), Posted Price Differential (PPD), and Rounding-Off Differential (RD).
- Final retail prices are rounded off to the nearest centavo.
Dissemination and Administrative Coordination
- Copies of the resolution were sent to the President of the Liquefied Petroleum Gas Institute of the Philippines, Inc., dealers’ associations, both Houses of Congress, Department of Finance, Department of Trade and Industry, National Economic and Development Authority, Department of Energy, Bureau of Internal Revenue, and other relevant agencies for information and guidance.
- Local dealers and associations are requested to assist in disseminating the resolution’s contents.
Legal Authority and Implementation
- The resolution was adopted on February 4, 1998, signed by Chairman Neptali S. Franco and members Melinda L. Ocampo, Artemio P. Magabo, and Bernarda C. Lavisores.
- It serves as the directive governing price adjustments, contributions, and withdrawals related to the Oil Price Stabilization Fund effective from January 16, 1998.