Senate OKs bill authorizing Marcos to suspend fuel excise tax
By Dhel Nazario
Published Mar 17, 2026 06:12 pm
At A Glance
- A bill that is seen to address the impact of rising global oil prices inches closer to being felt by Filipinos after the Senate approved it on third and final reading on Tuesday, March 17.
A bill that is seen to address the impact of rising global oil prices inches closer to being felt by Filipinos after the Senate approved it on third and final reading on Tuesday, March 17.
A gas station attendant fills up a motorcycle in Quezon City on Tuesday, March 3. With Middle East tensions blocking the critical Strait of Hormuz, the government’s economic team is moving to grant President Marcos Jr. the power to reduce fuel taxes once Dubai crude exceeds $80 per barrel to protect Filipinos from a potential price surge.
Voting 17-0-0, the Upper Chamber approved Senate Bill No. 1982 or An Act Authorizing the President to Suspend or Reduce excise Tax on Petroleum Products, amending for the purpose Article 148 of the National Internal Revenue Code of 1997.
Senator Pia Cayetano, chairperson of the Senate Ways and Means Committee and the bill's sponsor, assured the public that they took time to assess the measure. The bill was certified urgent by President Marcos.
"Not just because it's a certified measure, eh minadali na po natin (is we rushed it)," she said.
She added that the purpose of the bill is for it to be felt by the public.
"There is a loss of revenue potentially in the amount of P130 billion, then when we have to be sure that our countrymen can feel its effect," Cayetano said.
The Senate is looking to ratify the measure by Wednesday, March 18, before Congress adjourns its session.
During her interpellation of the bill, Sen. Risa Hontiveros asked how soon the public would feel its effects once it is passed.
Cayetano said that after the executive decides to suspend the excise tax, it could take 30 to 45 days before the public benefits from lower fuel prices.
"Kasi may stock na po ang mga oil companies, may nabili na sila (The oil companies still have stocks, since they already bought supplies). But as the day goes on, mamo-monitor naman natin yun kung paubos na yung stock nila (they can monitor if their stocks are running out) and they're now buying without the excise tax din then may chance naman na mas sooner mararamdaman (there's a chance that it can be felt sooner)," she explained.
Cayetano also gave an example of the price reduction should the excise tax be suspended.
For gasoline, the decrease would be P11.2 per liter; for diesel, P6.72 per liter.
This would bring down the price of gasoline to roughly P65 per liter, compared with an estimated range of P76.30 to P91.60 from March 17 to 23.
For diesel, Cayetano said that the price can drop from P88.95 to P114.92 per liter to roughly P82 per liter.
The approval comes a day after the House of Representatives approved House Bill (HB) No. 8418, or the much-sought fuel excise tax suspension bill, on third and final reading on Monday night, March 16. It seeks to grant President Marcos the authority to temporarily suspend or reduce excise tax on fuel products during national or global economic emergencies.
Also gaining the House’s final approval during the same plenary session was the proposed law allowing the temporary suspension of mandatory biofuel blending to help ease pump prices during periods of global oil market volatility.
It seeks to amend Section 5 of Republic Act (RA) No. 9367, or the Biofuels Act of 2006, to allow the President to suspend the mandatory use of locally sourced biofuels for up to one year if blended fuel prices become at least five percent higher than pure gasoline or diesel.