MANILA, Philippines — The Senate of the Philippines on Tuesday approved on third and final reading a bill granting Ferdinand Marcos Jr. the authority to suspend or reduce excise taxes on petroleum products to cushion consumers from surging fuel prices.
Seventeen senators voted in favor of Senate Bill No. 1982, which would allow the President to temporarily suspend or reduce fuel excise taxes when the average price of Dubai crude, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month before the order is issued.
The Senate moved swiftly on the measure after it was certified as urgent by Marcos, allowing lawmakers to bypass the usual three-day rule between readings and proceed directly to the final vote.
House version sets additional requirement
The Senate measure differs from its counterpart in the House of Representatives of the Philippines.
Under House Bill No. 8418, the President must also declare a state of national emergency or calamity before suspending or reducing fuel excise taxes.
Senators cite need for relief
Risa Hontiveros supported the bill, saying it could provide short-term relief for families, commuters and small businesses struggling with rising fuel costs.
However, she warned that suspending the tax alone would not fully offset the impact of global oil price shocks.
“Direct subsidies will provide more immediate, more targeted, and more equitable relief than a broad tax suspension,” Hontiveros said, adding that sectors such as drivers, farmers and fisherfolk should receive additional government assistance.
Sherwin Gatchalian, chair of the Senate committee on finance, also backed the measure, citing the urgent need to help Filipinos cope with the rapid increase in fuel prices.
Revenue concerns raised
Earlier, Pia Cayetano warned that suspending the excise tax could result in about P136 billion in lost government revenue.
Vicente Sotto III said he hopes the House will adopt the Senate version of the bill, raising the possibility of a “paper bicameral conference” to speed up the passage of the measure.
Senate Majority Leader Juan Miguel Zubiri said lawmakers aim to ratify the final version soon.
Biofuels measure also pushed
The President also certified as urgent Senate Bill No. 1965, which seeks to amend the Biofuels Act of 2006.
The proposal would allow the government to temporarily suspend the mandatory use of locally sourced biofuels if blended gasoline or diesel becomes at least 5 percent more expensive than pure fuel.
Cayetano said the measure aims to give policymakers flexibility during periods of extreme volatility in global energy markets.
“While the use of local biofuels provides environmental and agricultural benefits, it is not always the cheaper alternative,” she said.
