Marcos to sign emergency powers bill once received — Palace
Malacañang said President Marcos has yet to receive the emergency powers bill allowing the suspension or reduction of excise taxes on fuel, but assured the public that he will sign it immediately once it reaches his desk.
In her press briefing on Monday, March 23, Presidential Communications Office (PCO) Undersecretary Claire Castro said the delay is not due to any opposition but simply because the enrolled bill has not yet been transmitted to the President.
“Sa aking pagkakaalam… hinihintay po na maibigay sa Pangulo para mapirmahan (As far as I know… it is still being awaited to be given to the President for signing),” she said.
“Kapag nandiyan na po iyan pipirmahan po kaagad ng Pangulo iyan (Once it is there, the President will sign it immediately),” she added.
No pushback from Cabinet, sectors
Castro dismissed suggestions that the delay was due to resistance from Cabinet members or sectors concerned about government revenues.
She stressed that the President himself has certified the bill’s urgent passage to help cushion the impact of rising oil prices.
“The President wants it to be enforced immediately. The only reason that he could not do it [is] because the bill has not reached the President, as of now,” she reiterated.
“So, there is no reason for him to sign. So, after that, maybe, after signing, he would immediately make an order either to reduce or to suspend the excise tax,” she added.
Signing vs. implementation
Castro clarified that signing the bill is different from immediately exercising the powers granted under it, as the law sets conditions before the President can suspend or reduce excise taxes.
“Magkaiba po iyon… iba po iyong pipirmahan niya agad… at iyong maaring hindi niya agad ma-implement (Those are different… signing it immediately is different from possibly not implementing it right away),” she said.
She explained that under the proposed measure, the emergency powers may only be exercised if global oil prices breach $80 per barrel on average for 30 days.
Castro noted that this threshold had not yet been met when President Marcos said in an interview that exercising the emergency powers “depends” on the “complicated” oil trends.
“Kailangan na iyong price ay mag-reach ng $80 per barrel sa loob ng 30 days (The price must reach $80 per barrel for 30 days),” she said.
The proposed emergency powers form part of the government’s broader response to rising fuel prices driven by tensions in the Middle East.
Castro said the President intends to use the measure, once enacted and conditions are met, to help ease the burden on consumers and mitigate the effects of global oil price volatility.
Linked to actual oil imports
Castro also explained that the suspension or reduction of excise taxes applies to imported petroleum products.
“Kapag sinabi natin upon entry… kung wala tayong maa-angkat na langis, hindi mae-exercise iyong pag-reduce at pag-suspend ng excise (If we say ‘upon entry’… if we are not importing oil, the reduction or suspension of excise cannot be exercised),” she said.
How oil prices are determined
Meanwhile, Castro also explained why fuel prices remain high despite earlier lower acquisition costs of oil companies.
She said pricing follows global benchmarks under the Oil Deregulation Law.
“Under the deregulated downstream oil industry framework… ang presyo ng produkto ay babase sa prevailing international benchmark prices… primarily Mean of Platts Singapore or MOPS (Under the deregulated downstream oil industry framework… prices are based on prevailing international benchmark prices, primarily the Mean of Platts Singapore or MOPS),” she said.
Castro added that oil firms use a “first in, first out” system, meaning pump prices reflect current global market conditions, not past purchase costs.
“So, iyong pump prices po ngayon ang nagri-reflect ng current global market conditions kahit na iyong kanilang inventory ay nabili nila sa mas mababang presyo (Pump prices now reflect current global market conditions even if their inventory was purchased at a lower price),” she said.
She stressed that the government cannot dictate fuel prices under the deregulation law, except in cases of abuse.
“Hindi po ang DOE ang makakapagdikta ng presyo… ang mare-regulate lamang ay kung may paglabag o pang-aabuso (The DOE cannot dictate prices… it can only regulate in cases of violations or abuse),” she said.
Castro added that the same principle applies when global prices fall, as oil firms must also adjust downward even if their inventory was bought at higher costs.