The House of Representatives has just approved a bill that would allow President Ferdinand Marcos Jr. to suspend fuel excise taxes during emergencies or periods of high oil prices. This comes amid conflict in the Middle East, which is driving crude oil prices upward at a rapid pace.
The first trigger under the bill is if the average price of fuel reaches or exceeds $80 (P4,783.76) per barrel or Dubai crude oil prices based on the Mean of Platts Singapore (MOPS). The second trigger applies if the President declares a state of national emergency or calamity, wherein local fuel prices become severe enough to need direct intervention.
The tax suspension or reduction will apply to specific petroleum products and may be effective for up to six months at a time with a total duration of one year. However, if the conditions that triggered the suspension or reduction stabilize, the excise tax will be reinstated automatically. The President’s authority under the measure can be exercised until December 31, 2028.
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The bill aims to give the government a faster way to respond to oil price shocks before they trigger wider increases in fares, food prices, and other everyday expenses, as explained by House majority leader Sandro Marcos.
“The proposal offers real relief,” adds Marcos. “Especially for workers, drivers, small businesses and families who feel the impact of every peso added to the cost of fuel.”
