A legislative measure granting the President authority to suspend or reduce excise taxes on petroleum products cleared a key House committee on Tuesday, as lawmakers moved to address surging fuel costs driven by the ongoing Middle East conflict.
The unnumbered substitute bill approved by the House ways and means panel sets specific conditions before the presidential power can be activated — Dubai crude oil prices must exceed US$80 per barrel for at least one month prior to any suspension or reduction. The authority would last a maximum of six months per exercise and expires entirely on December 31, 2028.
Dubai crude had already climbed past US$100 as of March 9, effectively meeting the trigger threshold.
Panel chair Representative Stella Quimbo outlined the practical mechanism behind the measure, noting that immediate implementation hinges on how the tax credit component is structured.
“The best way is to suspend the collection of excise taxes and allow them a tax credit for the excise taxes they already paid [prior to the approval of the measure]. That way, can implement the measure immediately. We won’t need to wait for the oil firms to use up all their inventory [of fuel supply],” she said.
Beyond the excise tax bill, Quimbo said House leadership is preparing a broader omnibus measure modeled after the Bayanihan laws enacted during the pandemic — legislation designed to bundle a wider range of relief provisions that a standard tax bill cannot legally accommodate.
“Why like the Bayanihan? Because we have a constitutional prohibition. A bill has to have only one subject matter. So when you pass a bill… if that is a tax bill, you cannot include other subjects there such as oil deregulation, agrarian reform. But because of extraordinary times, the Speaker said, we can have a measure like that of the Bayanihan bills,” Quimbo told reporters.
She added that such a measure could also empower the Department of Energy to go after fuel retailers engaging in price manipulation. “Because of how important and significant the problem is, the bill can be all encompassing, including a provision that would strengthen the DOE so they can monitor and they will have the administrative strength to sanction those gas stations which engage in overpricing,” she said.
On the Senate side, the committees on ways and means and energy were set to hold a hearing Wednesday on at least five separate bills carrying similar provisions.
Palace Press Officer Undersecretary Claire Castro said President Marcos would hold off on certifying the measure as urgent until a committee report is in hand. Energy Secretary Sharon Garin has already backed the proposal, saying a two-month suspension could shave as much as P6 per liter off diesel prices.
