Last Dec. 12, I asked why gasoline in Manila, Seaoil’s P50.99 per liter, is costlier than the costliest in the US, $3.67 per gallon (P39.45 a liter) in San Francisco. The energy department’s Zenaida Y. Monsada, director of the oil industry management bureau, replies:
“To be exact, the $3.67/gallon in the US is equivalent to P42.285/liter, using the P43.61:$1 and 3.785 liters/gallon conversion.
“Comparing US and domestic gasoline prices would be unrealistic because:
“1. The US uses the West Texas Index, much lower than Philippine benchmark Dubai crude. Last Dec. 12 the WTI was $97.92 per barrel while Dubai was $106.86, a difference of almost $10. Reason: Asian oil demand is getting stronger, while the US is weakening due to its economic crisis.
“2. Gasoline in the US has a 91RON maximum quality, while premium gas in the Philippines has minimum of 93 RON.
“3. Gasoline in the Philippines is imposed an excise tax of P4.35/liter, plus 12-percent VAT, or approximately 19-percent tax. Tax on fuel in America, particularly San Francisco, is only about 16 percent.
“The above would be the main reasons why gasoline in the Philippines is costlier than in the US.”
Good Ms. Monsada brought up the tax angle, for it is a burden on Filipino consumers. US labor is so much higher than in the Philippines. California taxpayers get their money’s worth in the form of police protection, more and more freeways, clean air, etc. In the Philippines, taxes go to pork barrel in the three branches of government. One more thing: electricity in the Philippines, despite its cheaper labor, is costlier than in the US. And this again is due precisely to the higher fuel cost to produce power, and over-taxation for pork. It’s the system. Groan!
E-mail: jariusbondoc@gmail.comJarius Bondoc (The Philippine Star)
World Day for Safety and Health at Work
“Safety and health at work every day!”
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideos
Monthly Observances:
March – Women’s Role in History Month
April – Month of Planet Earth
Weekly Observances:
Last Week of March: Protection and Gender Fair Treatment of the Girl Child Week
Last Week of April – World Immunization Week
Daily Observances:
Mar 25 – International Day of Remembrance of the Victims of Slavery and the Transallantic Slave Trade
Mar 27– Earth Hour
Apr 21 – Civil Service Day
Apr 22 – World Earth Day
Apr 28 – World Day for Safety and Health at Work
