Unioil supports lifting of tariff
January 8, 2009
Unioil Petroleum Philippines Incorporated (UPPI)today voiced support for the government’s move lifting the tariff on imported petroleum products, saying it would reduce fuel cost and promote greater free trade in the region.
“We welcome this latest development for it will reduce fuel costs and increase free trade volume in the region, “UPPI President Kenneth Pundanera said adding it would also benefit independent oil players like Unioil.
The lower cost would be derived not only on the removal of the tariffs, but also the fact that oil products coming from within the Association of Southeast Asian Nation (ASEAN) region will also have lower transportation costs compared to products coming from the Middle East.
Aside from lower pump prices, Pundanera said President Gloria Macapagal-Arroyo’s move will also reduce power cost and increase mileage for vehicles.
It may even lead to further innovation in the oil industry not only in the country but in the ASEAN region, particularly in terms of cleaner fuel for low-emission engine, thereby reducing air pollution, he added.
This, he attributed to the availability of lower sulfur fuel products in the ASEAN region than in the Middle East.
In the Philippines, the independent oil players lead by Unioil are the leading innovators in the development and fielding of lower sulfur products such as the E10, biodiesel and ethanol.
He noted that Unioil has made known its position on the issue when it filed a position paper with the Tariff Commission supporting the tariff removal.
“We at Unioil has always insisted and called for the removal of the tariffs on imported fuel products as it would bring numerous benefits not only to the local oil industry, but more so the consuming public who will benefit from lower pump prices,” Pundanera said.
He added it would also level the playing field between the old and new players in the oil industry.
On Wednesday, President Arroyo issued an executive order that spells out the terms of the ASEAN Trade in Goods Agreement (ATIGA) lowering the tariff on goods, including imported petroleum products, from the Association of Southeast Asian Nations (ASEAN) to zero.
The Department of Energy (DOE) said pump prices in the country will go down by 70 centavos a liter with the removal of the tariff.