The House Committee on Ways and Means on Tuesday approved a substitute bill granting President Ferdinand Marcos Jr. the authority to temporarily suspend or reduce excise taxes on fuel amid surging global oil prices triggered by Middle East tensions.
The measure allows the President to adjust excise taxes on fuel products if the average Dubai crude oil price exceeds $80 per barrel for the month immediately preceding the suspension or reduction. The authority is limited to six months at a time and will remain valid only until December 31, 2028.
Former House Speaker and Leyte 1st District Representative Martin Romualdez welcomed the approval, saying it provides the President flexibility to respond to the oil crisis and assist vulnerable sectors.
“An excise tax suspension or reduction will be a big relief to our people at this time of soaring fuel prices. A suspension would mean a retail price reduction of ₱6 to ₱10 per liter,” Romualdez said.
Romualdez’s House Bill No. 5779 was among 15 bills and two joint resolutions tackled during the hearing. He had initially proposed permanently scrapping excise taxes on oil products but acknowledged the government’s dependence on tax revenues for essential social services.
He also urged oil companies to disclose their inventory volumes, noting that firms claimed they must first exhaust stocks on which excise taxes had already been paid before reflecting price reductions.
“They should declare which existing stocks will be sold with excise taxes and which incoming supply will be sold without these levies, so our people are properly guided,” Romualdez said.
Bicol Saro Party-list Representative Terry Ridon described the bill as a timely and decisive measure in response to global oil market volatility.
“With tensions in key petroleum-producing regions threatening to disrupt global supply and push fuel prices higher, the Philippine government must have the necessary tools to respond quickly and decisively to protect Filipino consumers,” Ridon said.
He added that the measure reflects a unified government effort to shield Filipinos from the effects of international crises.