President Ferdinand Marcos Jr. has signed into law Republic Act No. 12316, granting him emergency authority to suspend or reduce excise taxes on petroleum products.
This measure comes as the government responds to the relentless surge in global oil prices, driven largely by escalating conflict in the Middle East.
“Under the new law, the President may suspend or lower excise taxes on fuel — upon the recommendation of the Development Budget Coordination Committee and in coordination with the Department of Energy — if the average price of Dubai crude oil reaches or exceeds $80 per barrel for a full month,” the law states.
The suspension or reduction can apply to specific petroleum products and may vary depending on prevailing conditions. Each order will be valid for up to three months but can be extended for as long as one year.
“Once oil prices fall below $80 per barrel, excise taxes will automatically revert to their normal rates without the need for a new directive or legislation,” the law adds.
This emergency authority is time-bound and may only be exercised until December 31, 2028.