MANILA, Philippines — Ferdinand Alexander “Sandro” Marcos and Faustino “Bojie” Dy III have filed a bill in the House of Representatives seeking to grant the president authority to suspend excise taxes on fuel products during national or global emergencies.
Marcos confirmed on Monday that he filed House Bill No. 8292, which proposes amendments to Section 148 of the National Internal Revenue Code. The measure would allow the sitting president to suspend the collection of excise taxes on petroleum products—currently P6 per liter for diesel and P10 per liter for gasoline—in emergency situations.
Under the proposal, the president may order the suspension upon the recommendation of the Secretaries of Finance and Energy.
The suspension may be implemented if either of the following conditions is met:
- The average Dubai crude oil price reaches or exceeds $80 per barrel for at least three consecutive months before the suspension order; or
- A state of national emergency or calamity is declared by the president and results in extraordinary increases in domestic fuel prices, as certified by the Energy secretary.
The proposed amendment also allows the suspension to apply to specific petroleum products and may involve either a full suspension or partial reduction of excise tax rates depending on prevailing conditions.
Any suspension would be effective for up to six months, unless extended or terminated earlier by Congress through a joint resolution. However, the total suspension period cannot exceed one calendar year, and the excise tax would automatically be reinstated once the conditions that prompted the suspension no longer exist.
In the explanatory note of the bill, Marcos said the measure is timely as the country faces rising fuel prices linked to tensions in the Middle East.
“This measure grants the President of the Philippines the authority to suspend the imposition of, or reduce the excise taxes on petroleum products when public interest so requires,” he said.
Earlier, Dy assured the public that the House would pursue measures to cushion the possible economic impact of geopolitical tensions, including potential increases in fuel prices.
Meanwhile, the Department of Finance warned that suspending excise taxes on petroleum products could lead to P136 billion in foregone government revenue in 2026, including P121.4 billion from excise taxes and P14.6 billion from lower value-added tax (VAT) collections.
Economic planners have also projected that if tensions in the Middle East disrupt oil shipments through the Strait of Hormuz, diesel prices could rise to as much as P96 per liter. If the excise tax is suspended, prices could fall to around P90.04 per liter. Gasoline prices, meanwhile, could reach P70.20 per liter, but may drop to about P59 per liter with the tax suspension.