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Next, we have taxes and duties. The Philippine government imposes taxes on petroleum products, like excise taxes and value-added tax (VAT). These taxes contribute significantly to the final price. Regulations and import duties also play a role. The government can adjust these to influence prices. Import duties on crude oil and refined products can impact define flat rate shipping the cost. Import parity pricing is also an important concept. This is the price at which oil companies import petroleum products. It is usually based on the prevailing international prices plus costs such as freight, insurance, and duties. Any fluctuation in these factors directly impacts the final price you see on the fuel station's price board.
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