Senators on Tuesday, March 3, expressed support for granting President Ferdinand “Bongbong” Marcos Jr. the authority to reduce or suspend fuel excise taxes as global oil markets react to escalating conflict in the Middle East.
Senate Majority Leader Migz Zubiri said lawmakers should treat the request as an urgent consumer protection measure, especially for commuters, farmers, fisherfolk, and small businesses.
“I am in favor of granting the President those powers to be able to lower the excise tax on fuel. That move will definitely help cushion the impacts on high fuel cost due to the ongoing conflict in the middle east,” Zubiri said.
“We must act immediately so it can help temper sudden spikes on the prices of important commodities such as food and electricity. The President has my full support for that move and request,” he added.
Marcos earlier said he may ask Congress for emergency powers to reduce fuel excise taxes if the Middle East conflict drags on.
Zubiri noted that suspending the tax could provide immediate relief at the pump, lowering both excise and VAT components.
“When the price of oil suddenly jumps, it’s not just motorists who are affected. Even food prices, fares, and electricity bills go hand in hand,” Zubiri emphasized.
Senate President Pro Tempore Panfilo “Ping” Lacson also expressed openness to supporting Marcos’ request, citing the expiration of the TRAIN Law’s automatic suspension provision in 2020.
He suggested amending the law to authorize the Department of Finance (DOF) to suspend excise taxes if crude oil prices breach the US$80 threshold.
Senate President Vicente “Tito” Sotto III, however, cautioned against rushing approval, noting that the country still has reserves that could last two to three months.
“This (conflict) might not last that long. We might be worried about something that we should not be worried about. So in the meantime, we will study the proposal,” he said.
Senator Win Gatchalian, chair of the Senate Committee on Finance, warned of fiscal repercussions, estimating potential revenue losses of around ₱300 billion annually if excise taxes are suspended.
He argued that such a move may not be equitable, as wealthier motorists with more vehicles would benefit disproportionately.
Instead, Gatchalian urged tapping the President’s contingency fund to support public utility vehicle drivers directly. He also called on the Department of Energy (DOE) to form a task force to assess supply issues, stressing that nearly 80% of the country’s oil comes from the Middle East.