The House Committee on Ways and Means has approved a substitute bill empowering President Bongbong Marcos to suspend or reduce excise taxes on petroleum products amid surging fuel prices due to the escalating Middle East conflict.
On Tuesday, March 10, the House Committee on Ways and Means consolidated 15 similar bills into a substitute measure during its hearing. Rep. Miro Quimbo, the committee chair from Marikina's 2nd District, stated that the bill is essential to swiftly address the adverse effects of rising fuel costs amid volatile global oil markets.
The proposal amends Section 148 of the National Internal Revenue Code, granting the president authority to suspend or reduce excise taxes on fuel under specific conditions. These include when the average Dubai crude oil price reaches or exceeds $80 per barrel for at least one month, as reported by the Mean of Platts Singapore (MOPS), a benchmark for pump price adjustments. It may also apply if a state of national emergency or calamity is declared, leading to fuel price increases.
If enacted, the suspension could target specific petroleum products or apply broadly, with options for partial reductions. It would last up to six months, extendable by Congress via joint resolution but capped at one year total. Rates would automatically revert upon expiration without further action. The authority expires on December 31, 2028, and requires recommendations from the Development Budget Coordination Committee and the Department of Energy.
Meanwhile, oil companies are implementing staggered fuel price hikes this week, with Shell's diesel rising by up to P24.25 per liter and Petron's by up to P19.20. These follow 10 weeks of increases due to the US-Iran conflict, including airstrikes and the closure of the Strait of Hormuz. Malacañang announced that Marcos intends to certify the bill as urgent to expedite its passage. Approval could eliminate the P10 per liter excise tax on unleaded gasoline and P6 on diesel at stations.
