DOE Intensifies Call for an Energy-Efficient Lifestyle

Wazzup Pilipinas!

The Department of Energy (DOE) continues to promote the adoption of an energy-efficient lifestyle for all Filipinos.

During yesterday's (3 January) press conference, DOE Spokesperson and Undersecretary Felix William B. Fuentebella again underscored the importance of making wise energy choices with the DOE's recent launch of its "Save Save Save" campaign for 2019.

“The Secretary and the DOE urges everyone to have a new outlook for energy efficiency, especially as we welcome 2019," he said.

The Energy Chief, through USec. Fuentebella, also emphasized the Department’s energy resolutions and reminded Filipino consumers to embrace an energy-efficient lifestyle.

Sec. Cusi reiterated six tips toward fuel efficiency:

1. Save fuel by driving at a steady speed. By reducing speed from120 to 80 kph, tests conducted with popular cars indicated a 25% improvement in fuel economy.

2. Save fuel by anticipating stops. Tests prove that vehicles driven at 60 kph can travel a distance of 650 meters with gradual halts do not consume additional fuel.

3. Save fuel by minimizing vehicle load. Transporting unnecessary weight in your car results in an additional 10% fuel consumption.

4. Save fuel by trying “Ang-cash Tipid” (Carpooling Program). Carpooling is an arrangement whereby several individuals travel together in a private vehicle. Carpoolers share the costs of gas and often take turns to drive to their common destination.

5. Save fuel by driving less. By taking public transport such as the MRT and LRT, you can help lessen traffic congestion and at the same time provide seamless journey for the travelling public.

“Let us continue to ‘Save Save Save’ by using our energy wisely. Maximizing our energy ability would enable us to become globally competitive and usher in a new wave of economic prosperity for the country,” Sec. Cusi concluded.

DOE Assures Fair Implementation of TRAIN Law

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As the implementation of the second tranche of the TRAIN Law for petroleum products took effect starting 1 January 2019, the Department of Energy (DOE) yesterday assured the public it has taken measures to prevent abuse and ensure fair and effective implementation of the taxation scheme.

“The Department of Energy is mandated to ensure that the pricing of oil products is carried out within the parameters of the TRAIN Law,” Energy Secretary Alfonso G. Cusi said in a statement.

He added, "Over the process of the implementation of the first tranche of the TRAIN Law, we have reached out to our stakeholders, especially the oil companies for their cooperation and we will continue our coordination with them throughout the second tranche."

He stressed that the DOE will be even more vigilant in monitoring the implementation of the second tranche of the TRAIN Law for petroleum products.

“We will ensure the fuel stocks for 2018 will be utilized first and sold at the pre-implementation prices,” Sec. Cusi said.

As a result of its stringent monitoring operation, the Department has already asked several gas stations to explain why they implemented fuel price hikes as early as 2 January 2019.

Under the second tranche of TRAIN Law's implementation, an additional excise tax of P2.00 will be imposed per liter of diesel and gasoline, and P1.00 per kilogram on Household LPG. There will also be an additional 12 percent value added tax, which totals to P2.24 for both diesel and gasoline, and P1.12 for LPG.

However, the DOE pointed out that the increase in pump prices of petroleum products resulting from the imposition of the second tranche of fuel excise tax will still be smaller. This is due to the offsetting effect of the rollbacks implemented in 2018 and January 2019.

While there is an uptick in the price of oil in the world market, Sec. Cusi pointed out that industry forecasts do not see crude oil prices hitting record high prices, such as in October 2018 when Brent crude oil price breached the $80 per barrel level.

“If the trend continues, we do not expect it to have as much impact on fuel prices as it did last year. Besides, we can cushion the effect of any new oil price increases by becoming more efficient in our use of energy,” he said.

Through its E-Power Mo movement, the DOE has been providing the public with tips for an energy-efficient lifestyle, particularly in the use of fuel and electricity.

"We might have to spend a little more, but that little sacrifice would translate to huge benefits for the country,” the energy chief emphasized.

“Let us remember that the revenues from TRAIN will fund important programs, such as free education, increase in the salaries of our public school teachers, as well as crucial infrastructures under the ‘Build, Build, Build program. All these would sustain our economic growth towards Ambisyon 2040 by providing more jobs and livelihood opportunities for our people,” Sec. Cusi concluded.

Cusi on Fuel Excise Tax Implementation: Cooperate, Don’t Violate

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Department of Energy (DOE) Secretary Alfonso G. Cusi emphasized the urgent need for all petroleum retail outlets to heed the implementing guidelines on the second tranche of fuel excise tax, or face closure.

“The Secretary has been very clear - cooperate, don’t violate. We have been actively explaining and clarifying the implementation process for this second tranche. Dahil klaro ang lahat, mas mainam na tayo’y sumunod kaysa naman kapapasok pa lang ng bagong taon, isasara tayo,” DOE Spokesperson Felix William B. Fuentebella said in a press briefing held yesterday (7 January) at the agency’s headquarters.

(Given that everything is clear it is better that we follow rather than close down at the start of the new year.)



STRINGENT MONITORING OF OIL STOCKS

Oil Industry Management Bureau OIC-Director Rino E. Abad and Assistant Director Rodela I. Romero further explained that since last year, the DOE has undertaken steps to ensure the stringent monitoring of inventories in anticipation of the second tranche’s implementation.

A DOE directive dated 11 September 2018 required oil companies to submit per-depot and per-product ending inventory reports as of 31 December 2018 and daily withdrawal reports of such ending inventories starting 1 January 2019 until its full exhaustion. This ensures that the first tranche of excise tax will continue to be imposed on the 2018 ending inventories, while the second tranche of excise tax shall be imposed only on new inventories imported or produced from local refineries in 2019.

In addition, oil firms were also required to submit a notarized Year-End Inventory Report (as of 31 December 2018) covering petroleum products with the old excise tax rate. Said reports are to be submitted by 8 January 2019 in time for the submission of the Official Registry Book to the Bureau of Internal Revenue (BIR).

“These will help the DOE validate the exhaustion of old inventories. We also requested for Last Withdrawal Certificates stamped by the BIR as ‘Stocks On-Hand Prior to Applicable Date of Effectivity’. These would indicate the last removals of petroleum products subject to the old tax rates. On the other hand, the First Withdrawal Certificates with no BIR stamp would indicate the first removals of petroleum products with the new excise tax rate,” Asst. Dir. Romero expounded.

On violations, Director Abad stressed that aside from breaching tax laws, violators may also face criminal charges, particularly estafa.

Other measures being carried out by the Department include the inspection of retail outlets that already implemented the new excise tax, and the issuance of Show-Cause Orders to give concerned retail outlets the opportunity to explain.



CONSUMER POWER OF CHOICE

USec. Fuentebella emphasized that “Consumers need to be aware. The DOE asked retailers to display notices of the additional excise tax implementation in a one-meter by one-meter tarpaulin for transparency. This would empower the consumers with the ability to choose where to buy fuel.”

He added, “Do I go ahead and buy from this station already implementing the new excise tax, or do I gas up somewhere else? This is another exercise in consumer empowerment.”



TOWARDS ‘AMBISYON 2040’

The DOE continues to assure the public that it is closely monitoring the fair implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“We are watching closely and coordinating with the BIR and the Bureau of Customs to ensure accurate data reporting and monitoring. As Secretary Cusi said earlier, we should recognize the value of proper tax remittance. The revenue collected by the government will finance the establishment of key infrastructure, provide educational assistance, as well as other forms of poverty alleviation for our people,” the Energy Undersecretary asserted.