REVENUE REGULATIONS NO. 2-2018 issued on January 24, 2018 provides the revised tax rates and other implementing guideline on Petroleum Products pursuant to the provisions of Republic Act (RA) No. 10963 (Tax Reform for Acceleration and Inclusion [TRAIN] Law), to wit: PRODUCTS EFFECTIVITY January 1, 2018 January 1, 2019 January 1, 2020 (a) Lubricating oils and greases, including but not limited to base stock for lube oils and greases, high vacuum distillates, aromatic extracts and other similar preparations, and additives for lubricating oils and greases, whether such additives are petroleum based or not, per liter and kilogram respectively, of volume capacity or weight. (a.1) Locally produced or imported oils P 8.00 P 9.00 P 10.00 previously taxed but are subsequently reprocessed, re-refined or recycled, per liter and kilogram of volume capacity or weight. (b) Processed gas, per liter of volume capacity. (c) Waxes and petrolatum per kilogram. (d) Denatured alcohol to be used for motive power, per liter of volume capacity. (e) Asphalts, per kilogram. (f) Naphtha, regular gasoline, pyrolysis gasoline and other similar products of distillation, per liter of volume capacity P 7.00 P 9.00 P 10.00 (g) Unleaded premium gasoline, per liter of volume capacity (h) Kerosene, per liter of volume capacity P 3.00 P 4.00 P 5.00 (i) Aviation turbo jet fuel, aviation gas, per liter of volume capacity P 4.00 P 4.00 P 4.00 (j) Kerosene, when used as aviation fuel, per liter of volume capacity (k) Diesel fuel oil, and on similar fuel oils having more or less the same generating power, per liter of volume capacity P 2.50 P 4.50 P 6.00 (l) Liquefied petroleum gas used for motive power, per kilogram (m) Bunker fuel oil, and on similar oils having more or less the same generating power, per liter of volume capacity (n) Petroleum coke, per metric ton (o) Liquefied petroleum gas, per kilogram P 1.00 P 2.00 P 3.00 (p) Naphtha and pyrolysis gasoline, when used as a raw material in the production of petrochemical products or in the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined cycle power plant, in lieu of locally-extracted natural gas during the non-availability thereof, per liter of volume capacity P 0.00 P 0.00 P 0.00 (q) Liquefied petroleum gas, when used as raw material in the production of petrochemical products, per kilogram (r) Petroleum coke, when used as feedstock to any power generating facility, per metric ton The said revised Excise Tax rates 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; and 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 prescribed tax. The removal of denatured alcohol of not less than one hundred eighty degrees (180°) proof 90% absolute alcohol shall be deemed to have been removed for motive power, unless shown otherwise. 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. 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. For the period covering 2018 to 2020, the scheduled increase in the revised Excise Tax on fuel 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. 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. The 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 (DOF) 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 DOF 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 BIR-accredited metering devices to determine as accurately as possible the volume of petroleum products imported by them. To effectively implement the TRAIN Law, the following guidelines shall be followed during the transitory period: a. 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 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 in the case of taxpayers registered outside of RR 4 to 9 on or before January 15, 2018 using the prescribed format in Annex A of the Regulations. Likewise, similar inventories shall be submitted as of midnight of December 31, 2018, December 31, 2019 and December 31, 2020. 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 subject to the new Excise Tax rates. b. The 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. 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.