PRESIDENT Ferdinand Marcos Jr. on Tuesday stated he would ask Congress for the authority to cut back excise taxes for petroleum merchandise if Dubai crude costs exceed $80 per barrel.
Talking to reporters, Marcos stated the transfer can be an “emergency measure” and can be lifted as soon as oil costs stabilize.
On Tuesday, Dubai crude was buying and selling within the vary of $76 to $78 per barrel, up sharply from the typical of $63 per barrel in late 2025 due to the widening battle within the Center East.
The Tax Reform for Acceleration and Inclusion Regulation mandates the automated suspension of excise taxes on petroleum merchandise if the typical international oil worth reaches $80 per barrel for 3 consecutive months.
The president’s financial workforce will work with Congress to safe the authority for the president to briefly cut back excise taxes on gasoline ought to the value of Dubai crude oil exceed $80 per barrel, Finance Secretary Frederick Go stated on Tuesday.
“Amid the continued battle, we stay vigilant, ready, and dedicated to defending the welfare of all Filipinos,” Go stated in an announcement.
He added they’re intently monitoring developments within the Center East, significantly their influence on international oil markets and the Philippine economic system.
He emphasised that the proposed authority to cut back excise taxes is a precautionary measure and won’t be mechanically exercised if oil costs breach the brink.
“To be clear, this doesn’t imply the authority can be mechanically exercised,” Go stated.
“It’s a precautionary measure — a prepared coverage instrument that the president could use, if obligatory, to behave swiftly in defending Filipino customers and safeguarding the broader economic system,” he added.
The Finance chief added that the choice to chop excise taxes would rely on prevailing situations, together with the extent and persistence of worldwide oil worth will increase.
“Even when it (the value of crude) exceeds $80 per barrel, that doesn’t imply we react instantly. It additionally has to exist for a sure time period. If it goes as much as $80 for simply sooner or later after which drops again to $77 the subsequent day, why ought to we react?” he added.
In the meantime, Marcos stated there was no vital disruption but within the international provide chain regardless of escalating tensions within the Center East and warranted the general public that the nation maintained oil stockpiles enough to cowl about 50 to 60 days of provide.
He stated the out there reserves embody diesel, enough for about 50.5 days; gasoline oil and gasoline, every enough for about 51.5 days; kerosene, enough for about 67.5 days; jet gasoline, enough for about 58 days; and liquefied petroleum gasoline (LPG), enough for about 29 days.
He additionally stated oil worth shocks take time to maneuver by way of the system earlier than every day customers really feel the influence on primary commodities.
“It should take time for any of the results of the oil worth shocks to work by way of the system. And naturally, the prayer that we have now is that earlier than they work their manner by way of the system, we hope the state of affairs can be resolved so the general public won’t really feel the influence an excessive amount of,” Marcos stated.
“If this drags on, that’s when it is going to be felt,” he added.
The president stated that the federal government has ready varied situations, with estimates from the US suggesting the battle may final 4 to 5 weeks. Authorities companies have been getting ready extra detailed assessments as developments unfold, he added.
He stated that the federal government was additionally monitoring the greenback’s motion, noting that remittances have been despatched in US foreign money, though the peso has remained secure to date.
Marcos additionally outlined a number of interventions to mitigate the influence of potential oil worth will increase, together with gasoline subsidies for affected sectors resembling transportation and agriculture. He stated the federal government was additionally the opportunity of easing the transport price burden for commuters, particularly the working public, by offering no-fare bus rides alongside main routes and holding fares down.
The president stated the Division of Vitality was additionally in shut coordination with oil companies within the nation to make sure that will increase on costs can be carried out on a staggered foundation.
In the meantime, two senators filed separate payments which authorize the president to droop or cut back excise tax on gasoline and diesel if its common costs attain or exceed $80 per barrel based mostly on the Imply of Platts Singapore.
Sen. Bam Aquino on Tuesday filed Senate Invoice (SB) 1923 to guard Filipinos from the influence of sudden spikes in gasoline costs.
Sen. Joel Villanueva filed SB 1922, which mandates the Division of Vitality to evaluate present market situations to assist the Division of Finance full its suggestions to the president.
Aquino filed SB 1923 to amend the Nationwide Inner Income Code of 1997 to permit the chief government to droop the gathering of excise tax on gasoline in occasions of nationwide emergencies or when public curiosity so requires, upon the advice of the secretary of Finance.
Aquino stated the invoice goals to equip the federal government “with a sensible instrument to defend customers, help transport operators and small enterprises, and assist stabilize native costs when international situations threaten home financial stability.”
Speaker Faustino Dy III stated that the Home of Representatives was open to working with the Senate on the gasoline excise tax.
In an announcement, Dy stated in Filipino and English that it was clear that Filipinos would really feel the results — “in fares, in the price of meals, and different prime commodities” — if the value of Dubai crude exceeds $80 per barrel.
He stated the Home was open “to work with the Senate to check and, if wanted, amend the regulation to offer the president sufficient energy to cut back the excise tax in occasions when there’s a drastic enhance within the worth of oil.”
The transfer to grant the president emergency powers to droop the excise tax on gasoline merchandise and gasoline subsidies drew help from senators on either side of the political fence.
From the bulk bloc, Sens. Sherwin Gatchalian, Erwin Tulfo, JV Ejercito and Juan Miguel Zubiri stated they supported strikes to cushion the influence of rising oil costs, as did Sens. Bong Go and Francis Escudero.