President Bongbong Marcos has requested emergency powers from Congress to allow for a temporary reduction in the excise tax on petroleum products if oil prices continue to rise due to ongoing tensions in the Middle East.
During a recent briefing, Marcos stated that he is in discussions with leaders of both the Senate and the House of Representatives to secure authority to reduce the excise tax on fuel if the price of Dubai crude exceeds $80 per barrel. The President emphasized that the reduction would be a temporary measure, aimed at protecting consumers during the period of uncertainty.
“This will not be a permanent measure. It will be a precautionary tool to protect the public,” Marcos explained.
The push for reduced excise taxes comes as oil prices rise, partly due to escalating tensions in the Middle East, particularly Iran’s threat to close the Strait of Hormuz, a key oil shipping route. This has contributed to the surge in global oil prices, which recently reached $82 per barrel. Marcos expressed concern that further increases could place additional strain on Filipino consumers, particularly impacting transportation costs and the prices of goods.
To address this, Senate Bill No. 1922, filed by Senator Joel Villanueva, is being considered in Congress. This bill seeks to grant the President the authority to suspend or reduce the excise tax on gasoline and diesel when prices reach or exceed $80 per barrel. The proposed bill provides a legal framework for the temporary suspension of excise taxes, aligning with Marcos’ request for emergency powers.
The reduction in excise taxes would be temporary, with the government planning to lift the measure once the crisis stabilizes. Marcos has also directed the Department of Energy to work with oil companies to ensure any price hikes are gradual. Additionally, the government is exploring targeted fuel subsidies for public utility vehicle drivers, farmers, and fisherfolk to mitigate the financial impact.
The President’s request for emergency powers is still under discussion, and lawmakers will need to consider the potential fiscal impact, as well as the appropriate duration for the tax relief.
