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SECTION 1. SCOPE. - Pursuant to the provisions of Section 244 in relation to Section 245 of the National Internal Revenue Code (NIRC) of 1997, as amended, these  Regulations   are  hereby  promulgated   to  implement  the  provisions  on Petroleum Products under Section 84 of Republic Act No. 10963, amending provisions  of  Section  148,  Chapter  V  of  Title  VI  Excise  Tax  on  Petroleum Products, of the NIRC, as amended.

SEC. 2. REVISED  EXCISE RATES AND BASES OF SPECIFIC  TAX. - There shall be collected on refined and manufactured  mineral oils and motor fuels, the following excise taxes which shall attach to the goods hereunder enumerated as soon as they are in existence as such:

PR O DUC TS	EFF EC T I VI TY
	Janua ry 1, 2018	Janua ry 1, 2019	Januar y 1, 2020
(a ) Lubri cati ng oils and greases, i ncl udi ng but not li mit ed to base st ock f or l ube oils and greases, hi gh vacuum di still at es, aromatic ext racts and ot her si mil ar preparati ons, and additi ves f or l ubri cati ng oils and greases, whet her such additi ves are pet rol eum based or not, per lit er and kil ogram respecti vel y, of vol ume capacity or wei ght	P8 . 00	P9 . 00	P10 . 00
(a . 1) Locally produced or i mported oils previ ously t axed but subsequently reprocessed, re-refined, recycl ed, per lit er and kil ogram of vol ume capacity or weight
(b ) Processed gas, per lit er of vol ume capacity.
(c ) W axes and pet rol eum per kil ogram.
(d ) Denat ured al cohol to be used f or moti ve power , per lit er of vol ume capacity
(e ) Asphalt s, per kil ogram.
( fl Napht ha, regul ar gasoli ne, pyroli sis gasoline and other si mil ar products of distillation, per lit er of vol ume capacity	P7 . 00	P9 . 00	P10 . 00
(g ) Unl eaded premi um gasoli ne, per lit er of vo l ume capacity
(h ) Kerosene, per lit er of vol ume capacity	P3 . 00	P4 . 00	P5 . 00
( i) Avi ati on t ur bo j et f uel, avi ati on gas, per lit er of vol ume capacity	P4 . 00	P4 . 00	P4 . 00
( ) Kerosene, when used as avi ati on f uel, per lit er o f vol ume capacity

(k ) Diesel fuel oil, and on similar f uel oils having more or less the same generati ng power, per lit er of volume capacity	P2 . 50	P4 . 50	P6 . 00
( l) Liquefied pet rol eum ga s, used for moti ve power, per kil ogram
(m ) Bunker f uel oil, and on si mil ar oils havi ng more or l ess t he same generati ng power, per lit er of vol ume capacity
(n ) Pet rol eum coke, per met ric t on
(o ) Li quefi ed pet rol eum gas. per kil ogram	P1 . 00	P2 . 00	P3 . 00
(p ) Napht ha and pyrol ysis gasoli ne, when used as a raw mat eri al in t he producti on of petrochemical products or in t he refi ni ng of petrol eum product s, or as repl acement f uel f or nat ural -gas-fi red-combi ned cycle power pl ant, in li eu of l ocall y-ext ract ed nat ural gas duri ng t he non-avail ability t hereof, per lit er of vol ume capacity	P0 . 00	P0 . 00	P0 . 00
(q ) Li quefi ed pet rol eum gas, when used as raw ma t eri al in t he producti on of pet ro chemi cal product s, per kil ogram
(r ) Petroleum coke, when used as feedstock to any power generating facility per metric ton

SEC. 3. EXCEPTION  TO REVISED  EXCISE TAX RATES. - The revised rates under Section 2 shall not apply under the following instances:

a)   Lubricating  oils  and  greases  produced  from  basestocks  and  additives  on which  the excise  tax has already  been  paid shall no longer  be subject  to excise tax.

b)   Unless otherwise provided by special laws, if the denatured alcohol is mixed with  gasoline,  the  excise  tax  on  which  has  already  been  paid,  only  the alcohol content shall be subject to the tax herein prescribed. The removal of denatured alcohol of not less than one hundred eighty degrees (180o) proof (ninety  percent  (90%)  absolute  alcohol)  shall  be  deemed  to  have  been removed for motive power, unless shown otherwise;

SEC. 4. CREDITABLE EXCISE TAX. - The excise tax paid on the purchased basestock  (bunker)  used  in the manufacture  of excisable  articles  and forming part thereof shall be credited against the excise tax due thereon. For purposes of these  regulations,  any excess  of excise  taxes  paid  on raw materials  resulting from manufacturing,  blending, processing, storage and handling losses shall not give rise to a tax refund or credit.

SEC. 5. SUSPENSION  OF SCHEDULED  INCREASE. - For the period covering
2018 to 2020, the scheduled increase in the excise tax on fuel as imposed in this section shall be suspended when the average Dubai crude oil based on Mean Of Platts Singapore (MOPS) for three (3) months prior to the scheduled increase of the month reaches or exceeds eighty dollars (USD 80) per barrel. A separate Revenue Regulation (RR) shall be issued for this purpose.

SEC. 6. MANDATORY  MARKING  OF ALL PETROLEUM  PRODUCTS.  – The use of an official fuel marking or similar technology  on petroleum  products that are refined, manufactured.  or imported into the Philippines, and that are subject to the payment of taxes and duties, such as but not limited to unleaded premium gasoline, kerosene, and diesel fuel oil shall be required. It shall be implemented in  accordance  with  rules  and  regulations  to  be  issued  by  the  Secretary  of

Finance   in   consultation   with   the   Commissioner   of   Internal   Revenue   and Commissioner of Customs and in coordination with the Secretary of Energy.

SEC.  7.  MANUFACTURERS  AND/  OR  IMPORTERS  TO  PROVIDE THEMSELVES WITH COUNTING OR METERING DEVICES TO DETERMINE VOLUME   OF  PRODUCTION   AND  IMPORTATION.   -  Manufacturers   of  oil products  subject  to  excise  tax  shall  provide  themselves  with  such  necessary number of suitable counting or metering devices to determine as accurately as possible the volume, quantity or articles produced by them under the rules and regulations  promulgated  by the Secretary of Finance. Upon recommendation  of the  Commissioner   of  Internal  Revenue:   Provided,   That  the  Department   of Finance shall maintain a registry of all petroleum manufacturers and/ or importers and the articles being manufactured  and/or imported by them: Provided, further, That  the  Department  of  Finance  shall  mandate  the  creation  of  a  real-time inventory of petroleum articles being manufactured, imported or found in storage depots of such petroleum manufacturers and/ or importers: Provided, finally, That importers  of  finished  petroleum  products  shall  also  provide  themselves  with Bureau-accredited metering devices to determine as accurately as possible the volume of petroleum products imported by them.

SEC. 8. TRANSITORY  PROVISION.  - For the effective  implementation  of the Act, the following guidelines shall be followed during the transitory period:

a)   Submission   of   Stock   Inventories.   Concerned   oil   companies,   owners, operators   or   lessees   of   storage   depots   shall   submit   duly   notarized inventories of all petroleum products as of midnight of December 31, 2017 to Excise LT Field Operations Division (ELTFOD) in the case of taxpayers registered within Revenue Region (RR) Nos. 4 (San Fernando, Pampanga), 5 (Caloocan), 6 (Manila), 7 (Quezon City), 8 (Makati City) and 9 (San Pablo City) or to the concerned Excise Tax Area (EXTA) in the case of taxpayers registered  outside  of  RR  4  to  9,  on  or  before  January  15,  2018,  in  the prescribed   format   in  Annex   “A”.  Likewise,   similar   inventories   shall  be submitted as of midnight of December 31, 2018, December 31, 2019 and December 31, 2020. These sworn statements shall likewise be subjected to verification as required under existing regulations and issuances. In the case of failure to submit the required inventories by any of the aforesaid taxpayer, petroleum products found in their possession as of January 1, 2018, January 1, 2019 and January 1, 2020 shall be subjected to the new excise tax rates.

b) Accounting for stocks or inventoy of goods after each date of effectivity of the new excise tax rates. These inventories of petroleum products taken prior to each date of effectivity  shall be liquidated  and accounted  for on a “First-In First-Out” (FIFO) method of inventory.

c) Issuance   of  Withdrawal   Certificates.   All  Withdrawal   Certificates   issued covering the removals of petroleum  products subject to the old or previous tax rates products shall be prominently  stamped with the phrase “STOCKS ON   HAND   PRIOR   TO   APPLICABLE   DATE   OF   EFFECTIVITY”.   The removals of finished goods where the accompanying Withdrawal Certificate/s do not bear such information shall be subject to the new excise tax rates imposed under these Regulations  at the time of its actual removal, even if the same were taken from the old or previous inventory.

SECTION  9. PENALTIES.  - Violations  of the  provisions  of these  Regulations shall be subject to the corresponding  penalties provided for under Title X of the NIRC of 1997, as amended, and applicable regulations.

SECTION  10.  REPEALING  CLAUSE.  - All  rules  and  regulations  inconsistent with the provisions of these Regulations are hereby repealed or amended accordingly.

SECTION 11. EFFECTIVITY.  - These Regulations  shall take effect immediately following  its  complete  publication  in  at  least  one  (1)  newspaper  of  general circulation.