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Petron income dragged down by TRAIN, higher world oil prices

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ABS-CBN News

MANILA - Petron, the country&#x27;s biggest oil company, said its net income went down in the first three months of the year as the TRAIN Law raised fuel excise taxes again, and as world oil prices steadily rose. In a disclosure to the stock exchange, Petron said its consolidated net income for the period was P1.3 billion, down from P5.8 billion last year. The company said consolidated revenues also went down 4 percent in the first quarter to P124.6 billion.&quot;This was due mainly to a 5 percent decline in volume for the Philippine operations following the implementation of the TRAIN Law,&quot; Petron said. An additional P2 was added to excise taxes for diesel and gasoline this year, as the second tranche of fuel taxes under the TRAIN, or Tax Reform for Acceleration and Inclusion Law, took effect.This brought the total excise tax for diesel to P4.50 and gasoline to P9.The oil firm said the increase translated to around P8 billion in excise taxes and P1 billion in VAT.Petron added that the new tax structure also led to a &quot;price advantage&quot; for importers of finished products over refiners like it. The company said refiners maintain higher inventory in crude form, which is immediately taxed upon production. Finished fuel stocks that were imported before Jan. 1 meanwhile were not subject to the additional excise taxes, making them cheaper. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/03/19/fuel-tax-hike-only-for-new-stocks-energy-dept">Fuel tax hike only for new stocks: Energy dept</a></li></ul>Despite the results, Petron said it will push through with its expansion plans this year. The company said its new lube oil blending plant, with a capacity twice of its current Pandacan plant, will soon be operational. Petron is also expanding its polypropylene plant.“We fully understand that long-term growth will always be threatened by inherent risks, and these investments will ensure our continued growth and profitability in the future,” said Petron president and CEO Ramon Ang.Petron&#x27;s Bataan refinery went into an emergency <a href="https://news.abs-cbn.com/business/04/25/19/petron-keeps-bataan-refinery-shut-for-maintenance-after-quake">shutdown </a>following the April 22 earthquake, but the company said this would not affect local supplies as the company has enough inventory.

Petron, the country's biggest oil company, said its net income went down in the first three months of the year amid higher fuel excise taxes, and as world oil prices began rising again.

Petron, the country's biggest oil company, said its net income went down in the first three months of the year amid higher fuel excise taxes, and as world oil prices began rising again.