In line with this, Department of Energy director Zenaida Y. Monsada bared that the trigger levels for the 1.0 percent duty level is undergoing new round of scrutiny.

"We are now checking if there is still a possibility of lowering the rates, and yet remain revenue neutral for the government," she said.

The triggers have been based on the recommended parameters of the Department of Finance .

Monsada hinted that at the rate the price of crude is moving in the international market, such points to a possibility that the one percent tariff might be lifted soon.

"We are now looking if we can lower the trigger to maintain one percent discount. It is possible that the diesel could be lifted if we would consider the average in the first half of June," she said.

From the energy department’s viewpoint, it has been haggling if the price levels to merit the tariff reduction can still be lowered; but should be hinged on result that it remains revenue-neutral for the government. (MMV)

The tariff reduction has been aligned as one of the array of mitigating measures embraced by government to ease the impact surging global oil prices on consumers’ pockets.

Economic managers are wary, that if price hikes are not cushioned, this will trigger inflationary impact on all other basic commodities; and might also include hikes in transport fares and wages.

Based on estimates, the imposed tariff cuts will redound to P2.5 billion foregone revenues for the government coffers on a monthly basis.

The computation of revenue impact had been based on the level of imports that the oil firms have been sourcing; and those refined locally.

¡§It’s actually the economic managers that proposed the review as they want to mitigate the high and increasing oil prices,¡¨ Monsada stressed.

President Arroyo recently announced a P0.50 per liter cut in diesel prices as a result of the slashed import duty.

Somehow, this move calmed the transport sector which has been incessantly demanding for new round of fare increases. (MMV)