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New TRAIN Tax on Oil and Gas in 2019 and 2020

Tighten your belts and get ready for higher prices of LPG, gas, and diesel starting January 1, 2019!

Did you know that there are additional excise taxes that will be imposed on oil, gas, and LPG beginning January 2019 (and a new round of taxes again beginning January 2020) under the TRAIN tax law that was approved in 2018?

We’re likely very familiar with the TRAIN law’s excise tax imposed in 2018 on petroleum products — which partly contributed to the higher inflation that year — but brace yourselves for two more rounds of taxes on diesel, gasoline, and other oil products which will kick in starting January 1, 2019 and January 1, 2020.

Yes, the approved TRAIN tax law of 2018 lowered income tax rates for all taxpayers but it also increased tax rates on several products including sugary beverages, automobiles, and oil and petroleum products, among others.

The approved TRAIN’s excise tax on oil and fuel spans three years, from 2018 until 2020, and will increase every year as follows.

New Tax on LPG, Diesel, and Gas under TRAIN – 2018, 2019, 2020

New Excise Tax under TRAINStarting January 1, 2018Starting January 1, 2019Starting January 1, 2020
LPGP1.00 per literP1.00 per literP1.00 per liter
DieselP2.50 per literP2.00 per literP1.50 per liter
GasolineP2.65 per literP2.00 per literP1.00 per liter

* Other useful TRAIN resources:

Although the implementation of new excise taxes will begin on January 1, the Department of Energy (DOE) has said that old stocks or inventories kept by companies should not automatically be charged the higher rates. Thus, Filipinos should start feeling the effect of higher oil prices only around the middle of January, the DOE claims.

One thought on “New TRAIN Tax on Oil and Gas in 2019 and 2020”

  1. Sharlene Andrade says:

    Good thing I’ve read this article, I became aware of this new TRAIN tax. Thank you.

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