Speaker Faustino “Bojie” Dy III and House Majority Leader Sandro Marcos of Ilocos Norte filed a bill authorizing the President of the Philippines—currently President Ferdinand Marcos – to suspend or reduce excise taxes on petroleum products during national or global economic emergencies to help cushion Filipinos from surging fuel prices.
Marcos said House Bill (HB) No. 8292 seeks to amend the National Internal Revenue Code to give the President the authority, upon the recommendation of the Secretary of Finance and in coordination with the Secretary of Energy, to temporarily suspend or reduce excise taxes on fuel when extraordinary conditions drive global oil prices higher.
“This measure grants the President of the Philippines the authority to suspend the imposition of, or reduce the excise taxes on petroleum products when public interest so requires,” the two House leaders said in the bill’s explanatory note.
“The measure comes amid renewed volatility in global oil markets due to geopolitical tensions in the Middle East, which threaten to disrupt supply and push fuel prices higher.”
Marcos said the “measure comes amid renewed volatility in global oil markets due to geopolitical tensions in the Middle East, which threaten to disrupt supply and push fuel prices higher.”
The authors noted that the Philippine economy remains highly vulnerable to global petroleum market fluctuations, with tensions involving the United States, Israel and Iran raising fears of oil supply disruptions and surging crude prices.
They added that because the Philippines imports nearly 90 percent of its petroleum from the Middle East, geopolitical tensions in the region can quickly drive up domestic fuel prices, fueling inflation and eroding consumers’ purchasing power.
Under the bill, the President may suspend or reduce excise taxes on fuel if the average Dubai crude oil price reaches at least $80 per barrel for three consecutive months, or if a national emergency or calamity results in extraordinary increases in domestic pump prices.
Any suspension may apply to specific petroleum products and will be effective for up to six months, subject to extension by Congress but not exceeding one year in total.
The President would also be required to submit a report to Congress within 15 days of issuing the suspension order, and monthly thereafter, detailing its basis, the estimated foregone revenues, and the expected impact on fuel prices and inflation.
The Speaker and the Majority Leader lamented that rising fuel costs hit vulnerable sectors the hardest.
“Rising fuel prices impose a disproportionate burden on the most vulnerable sectors of society, particularly farmers, fisherfolk, public transport operators, small enterprises, and low-income households whose livelihoods are directly affected by increases in petroleum costs,” they said.
“In times of national emergency or sudden global disruption, the government must be equipped to act swiftly to mitigate the impact of these shocks and safeguard the welfare of the Filipino people,” they added.
“The measure would provide the government with a flexible policy tool to stabilize prices during periods of severe volatility.”
The measure, according to the House leaders, would provide the government with a flexible policy tool to stabilize prices during periods of severe volatility.
“By providing a targeted and time-bound policy mechanism, the government is able to respond promptly to extraordinary fuel price volatility, ease the burden on consumers, and help stabilize domestic prices during the period of severe economic disruption,” they stressed.
