Senate OKs bill allowing president to suspend or reduce excise fuel tax

2026-03-17 - 11:31

MANILA, Philippines – The Senate on Tuesday, March 17, passed on third and final reading a measure that would allow President Ferdinand Marcos Jr. to reduce excise taxes on petroleum products amid the ongoing conflict in the Middle East. With a unanimous 17-0 vote in the plenary, senators voted to pass Senate Bill No. 1982, which authorizes the president to suspend or reduce the excess tax on petroleum products if the average oil prices breach $80 a barrel for one month. The Senate’s passage of the bill comes a day after the House of Representatives passed their counterpart measure. However, the House’s version requires the president to declare a state of national emergency or calamity first to justify the suspension or reduction of levies. Marcos certified the measure – along with another bill proposing to temporarily suspend the mandatory use of biofuels – as urgent on Monday, March 16. In her sponsorship speech for the measure, Senator Pia Cayetano noted that the Philippines sources 98% of its petrol from West Asia or the Middle East, leaving the country vulnerable to supply shocks when tensions arise in the region. She also said that these price shocks hurt Filipino households most. For instance, the surge in fuel prices has already triggered fare increases on public transport. “Every peso added to the price of fuel means less food on the table, less money for school, and more hardship for families already struggling to get by,” she said. Must Read Fare hikes: How much jeepneys, buses, and ride-hailing cars now cost The excise taxes will revert to the rates specified under the National Internal Revenue Code under the following conditions: One week after the one-month average of Dubai crude oil prices fall below $80 as certified by the Department of Energy (DOE); or After three months, whichever comes first. The Senate measure also limits the tax exemption or reduction to just one calendar year, and this power can only be exercised by the president until December 31, 2028. Cayetano also noted that the measure could cost the government some P136 billion in revenues, which would have gone to the Philippine Health Insurance Corporation and various education programs. “Thus, the challenge before us is to strike a careful balance — providing immediate relief to consumers facing volatile fuel prices while safeguarding the country’s fiscal health and long-term economic stability,” she said. DOE Secretary Sharon Garin earlier said diesel prices may range from P95 to P114 beginning Tuesday, March 17. Garin said this is the highest jump in oil prices in the country’s history, and pump prices are at a new historical high. – Rappler.com Must Read ​​[In This Economy] How will the US–Iran conflict affect the Philippine economy?