President Bongbong Marcos has signed a fuel tax cut law as rising oil prices continue to push up daily costs, with the government now looking at April 12 or 13 as the earliest window to act.
On March 25, Marcos signed Republic Act No. 12316, a measure that allows him to temporarily reduce or suspend excise taxes on petroleum products. The law was pushed as global oil supply tightened due to conflict in the Middle East, driving fuel prices higher and adding pressure on transport, electricity, and food costs.
The Department of Finance said the President can issue an executive order by April 12 or 13, following the required 15-day effectivity period after the law’s publication. DOF Undersecretary Karlo Adriano told senators, “the earliest that the president can issue the EO is around April 12 or 13.”
The law sets strict conditions. The President can only act if the average price of Dubai crude oil reaches at least $80 per barrel for one month and upon recommendation of the Development Budget Coordination Committee. Officials confirmed that this trigger has already been met, with oil prices even breaching the $100-per-barrel mark earlier this month.
Any tax cut will be temporary and can last up to three months. Once oil prices fall below the threshold or the period ends, excise taxes will automatically return to their original rates. The authority to use this power remains in place until December 31, 2028.
For the public, the move could bring some relief at the pump. Lower fuel costs may help ease transport fares and slow increases in basic goods that rely on fuel for delivery. The government is also required to report to Congress on the effects of the measure, including its impact on inflation and the expected loss in revenue.
Marcos said the timing will depend on conditions. “Ngayon, titingnan ngayon natin kailan ang pinakamagandang oras.”
