Senator Win Gatchalian, chairperson of the Senate Committee on Finance, said the government should reduce—rather than fully suspend—the excise tax on oil as fuel prices continue to rise.
In a television interview, Gatchalian weighed in on the measure signed by President Ferdinand Marcos Jr. aimed at easing the burden of high fuel costs.
“At this point ang tamang paraan ay to reduce it dahil tuloy-tuloy ang pagtaas ng presyo ng langis. Makikita natin na almost nagdoble na ang presyo ng diesel. As of this point, lampas na sa more than 30 days na ‘yung $80 per barrel,” Gatchalian said.
When asked how much should be reduced, the senator specified the current excise tax rates.
“For gasoline, it’s ₱10, for diesel it’s six pesos ‘yun ang nasa excise tax.”
Gatchalian stressed that any reduction must translate into actual relief for consumers, noting that oil companies should also refrain from imposing steep price hikes that could offset the benefits of lower taxes.
“What’s important is masigurado natin na magre-reduce din ‘yung oil companies dahil kung magre-reduce tayo ng ₱10, equivalent niyan is almost ₱17 billion per month on excise tax pero ang importante, ang oil companies hindi rin sila magtataas ng mataas dahil kung magtataas din sila ng mataas… hindi rin mararamdaman ng ating kababayan ‘yan,” he added.
The senator emphasized that balancing tax adjustments with market behavior is key to ensuring that the public genuinely feels the impact of government intervention.