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)
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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