Two senators have filed separate measures seeking to grant President Ferdinand “Bongbong” Marcos Jr. the authority to suspend or reduce fuel excise taxes in response to rising global oil prices linked to the Middle East conflict.
Senate Deputy Minority Leader Joel Villanueva filed Senate Bill No. 1922, which would authorize the President—upon the recommendation of the Department of Finance (DOF) and the Department of Energy (DOE)—to suspend or reduce excise taxes on gasoline and diesel once average prices reach or exceed $80 per barrel, based on the Mean of Platts Singapore (MOPS) benchmark.
“In times of global uncertainty, our government must act with both compassion and prudence. The measure we filed today on the temporary lifting of excise tax on fuel seeks to strike that balance,” Villanueva said.
He stressed that fuel price increases have a cascading effect on the broader economy.
“Fuel price spikes do not affect transportation alone. They cascade across the economy, increasing food prices, electricity costs, logistics expenses, and ultimately inflation. The burden is felt most heavily by ordinary Filipino families, public utility drivers, farmers, fisherfolk, and small businesses,” he added.
Villanueva explained that the DOF is best placed to assess “inflationary pressures, revenue implications, and macroeconomic stability,” while the DOE will monitor market conditions to help guide the President’s decision.
He noted that the proposed mechanism provides for the automatic lifting of such suspension once global oil prices stabilize, preserving fiscal discipline and revenue predictability.
Meanwhile, Senator Bam Aquino filed Senate Bill No. 1923, which similarly seeks to authorize the President to suspend excise taxes on oil products during national or global emergencies.
Aquino warned that delayed or inflexible government responses could worsen economic strain, particularly on low-income households.
“This will primarily affect our poor countrymen. Especially since the cost of goods increases when the price of petroleum products increases. When the price of crude oil increases, the price of goods will increase. The ordinary Filipino will suffer again,” he said.