As fuel prices roll back after Middle East-driven hikes, economic managers justified not suspending diesel and gasoline excise taxes, arguing it would mostly aid the wealthy. They highlighted a targeted P10 per liter subsidy for public utility vehicles and suspensions on LPG and kerosene for the vulnerable.
MANILA, Philippines — In the ongoing saga of fuel price volatility triggered by Middle East tensions—following hikes that pushed diesel over P100 per liter, recent rollbacks up to P23 on April 14, and President Marcos' suspensions of excise taxes on LPG and kerosene—economic managers defended excluding diesel and gasoline from broader relief.
Finance Undersecretary Karlo Adriano noted diesel's excise tax is only P6 per liter amid prices near P100, explaining why the Development Budget Coordinating Committee (DBCC), with the Department of Energy (DOE) and Department of Transportation (DOTr), opted for a P10 per liter discount targeted at public utility vehicle (PUV) drivers over the next three months—the most affected sector.
"The top three income deciles account for 85 percent of diesel consumption," Adriano said. Finance Secretary Frederick Go called the approach balanced and fiscally responsible. The DBCC recommended LPG and kerosene suspensions to aid vulnerable and middle-income families, with President Marcos invoking special congressional powers on April 13, nearly three weeks after signing the measure on March 25.
Excluding diesel drew criticism, including from Sen. Erwin Tulfo, who urged inclusion based on reports of presidential consideration. Bureau of Customs Commissioner Ariel Nepomuceno estimated P500 million monthly LPG revenue loss and P20 million from kerosene, but noted "bigger interests at stake."
Meanwhile, LPG supply has extended to 50 days as demand dropped 30 percent, with consumers shifting to charcoal and firewood, per Arnel Ty of the LPG Marketers Association Inc.
