Excise tax cut on fuel depends on global oil trends—Marcos
President Marcos said the government’s decision to suspend or reduce excise taxes on fuel will depend on global oil price movements, stressing that the situation remains highly unpredictable amid the ongoing conflict in the Middle East.
Marcos said this after Congress approved on the third and final reading the bill authorizing the president to suspend or reduce excise taxes on petroleum products during national or global economic emergencies, allowing the government to respond quickly to extraordinary volatility in global fuel prices.
In an interview with reporters in San Juan City, the President said the government is closely monitoring developments before deciding when and how much of the excise tax adjustment will be implemented.
“That depends. It’s a very complicated calculation. We have to watch the trends on oil prices,” he said on Wednesday, March 18.
“It’s very hard to say because it’s all speculation. We don’t know how long this will last for. We don’t know what the effects are,” he added.
Monitoring global uncertainties
Marcos noted that uncertainties in global supply routes, particularly in key chokepoints such as the Strait of Hormuz, are being considered in the government’s assessment.
“We don’t know what will happen… so right now, we are just adjusting to the situation,” he said.
He added that the government would only exercise its authority to adjust excise taxes when conditions warrant such intervention.
“When the situation calls for it, then we will see when to exercise that power and by how much,” he said.
No supply issues for now
Despite the volatility in global markets, Marcos assured the public that the country currently has no supply problems with fuel and other essential goods.
“But right now, we don’t have a problem sa supply with petroleum products,” he said.
He emphasized that maintaining a stable supply remains the government’s primary concern while it continues to monitor price trends and determine the appropriate timing for possible tax adjustments.
The President earlier sought authority from Congress to suspend or reduce excise taxes on petroleum products to cushion the impact of rising fuel prices.
The proposed measure is intended to give the executive branch flexibility to respond quickly to oil price spikes caused by global supply disruptions and geopolitical tensions.
Marcos also has certified as urgent a bill seeking to amend the Biofuels Act of 2006 to help cushion the impact of rising fuel prices and strengthen the country’s energy resilience.
According to the certification, the bill aims to mitigate the impact of rising fuel prices amid escalating geopolitical tensions and volatility in global oil markets.
The Biofuels Act of 2006 established the government’s policy to reduce dependence on imported fossil fuels by promoting the development and use of locally produced biofuels.
Among others, the law mandates the blending of bioethanol with gasoline and biodiesel with diesel to promote renewable energy, support local agriculture, and reduce greenhouse gas emissions.
The proposed amendments are expected to enhance the country’s capacity to respond to fuel price shocks while promoting alternative and renewable fuel sources.