The Department of Finance (DOF) maintained on Tuesday that suspending excise taxes on gasoline and diesel would provide only marginal relief to consumers, as global market forces are expected to offset potential price reductions.
Finance Secretary Frederick Go said the Development Budget Coordination Committee (DBCC) found that lowering fuel taxes on these petroleum products would not significantly ease pump prices.
“The DBCC has determined that suspending excise taxes on diesel and gasoline would not likely provide meaningful relief, as any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics,” Go stated.
Instead, the government will prioritize targeted subsidies for sectors most affected by rising fuel costs, including public transport operators, drivers, commuters, farmers, and fisherfolk.
“This measured and targeted response is designed to deliver immediate relief, ensuring that support reaches those who need it most, while preserving fiscal space to sustain essential public services and respond to an unpredictable global environment,” he added.
Go emphasized that suspending excise taxes on liquefied petroleum gas (LPG) and kerosene would provide more direct relief to households, projecting price cuts of around ₱36.96 per 11-kilogram LPG tank and ₱5.56 per liter of kerosene.
The statement follows President Ferdinand Marcos Jr.’s approval to suspend excise taxes on LPG and kerosene starting April 14, while taxes on diesel and gasoline remain unchanged.
Citing data from the Philippine Statistics Authority, Go noted that lower-income households stand to benefit most, with 30% using kerosene and more than half of LPG users coming from the bottom 70% income bracket.
“This means the benefits extend beyond the poorest households to also support middle-income families,” Go said.