Senator Bam Aquino on Monday reminded the government that the Tax Reform for Acceleration and Inclusion (TRAIN) Law provides for the automatic suspension of excise taxes on petroleum products once global oil prices reach $80 per barrel.
Under the safeguard provision pushed by Aquino, excise tax collection on fuel must be suspended if the average world market price of oil hits $80 per barrel for three consecutive months.
Local oil companies announced that gasoline and diesel prices will increase by ₱1.90 and ₱1.20 per liter, respectively, on Tuesday.
“Sa isinulong nating safeguard sa TRAIN Law, pinapayagan ang automatic suspension ng pangongolekta ng excise tax sa langis kapag lumampas sa $80 kada bariles ang presyo ng langis sa world market,” Aquino said.
He added that the suspension would help ease the burden of expected price hikes due to the ongoing conflict in the Middle East.
Aquino warned that rising oil prices could trigger a domino effect on food and basic goods, further burdening consumers. He is expected to file a resolution related to the issue.
Aquino’s Legislative Push:
- In the 20th Congress, Aquino filed Senate Bill No. 265 seeking to remove excise taxes under TRAIN on diesel, kerosene, LPG, fuel oil, and unleaded gasoline.
- He argued that these taxes contribute to higher fuel prices, cascading into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos.
- The measure aims to provide relief to commuters and drivers, particularly those operating diesel-powered vehicles such as jeepneys, buses, and delivery trucks.
- It would also lower household expenses for cooking and lighting in poor and off-grid communities, while reducing logistics costs for producers and small businesses.