A public policy think tank is calling on President Ferdinand R. Marcos Jr. to suspend taxes on petroleum products until the price stabilizes in the international market.

This after Budget Secretary Amenah Pangandaman on Wednesday said the government will not suspend the value-added tax and excise tax on oil products. Still, other measures are in place to mitigate the effects of rising oil prices and the cost of basic commodities.

"The President, in several instances, has never shied away from undertaking executive action for the public interest, such as price control on rice. As such, nothing can prevent the President from undertaking executive action to address rapidly rising petroleum prices during this period of price volatility," said Atty. Terry Ridon, convenor of Infrawatch PH.

Ridon, a former House Energy Committee member, said the President can suspend both the value-added and excise taxes on petroleum products.

Pangandaman, in a Viber message to reporters, said the government has a solid action plan for sustainable and inclusive economic growth called the Medium Term Fiscal Framework.

To achieve the government's overarching objective to stay on track with its Agenda for Prosperity, she said it should follow the MTFF for fiscal stability even amidst headwinds, such as inflation.

"This is the formula that worked for us and allowed us to meet our 7.6 percent GDP growth in 2022 despite the incredibly high inflation at that time," Pangandaman said.

According to Ridon, with the suspension of both taxes, the public can expect an immediate 25 percent price reduction, assuming gasoline prices at P70/liter.

The suspension proposal, he said, will revert current fuel prices petroleum prices to significantly less than the average price in the last four months, at around 50 per liter for gasoline and around 40 per liter for diesel.

"This affords the public the space to prepare for graduated price adjustments in the event the suspension is lifted, when new fiscal measures are implemented to more adequately respond to price volatility in the international oil market while balancing revenue and public impact," he said.

He said the current price volatility of petroleum prices is the primary justification for the President to suspend petroleum taxes.

"With this volatile price environment, the public cannot wait for new legislation to address problems requiring urgent solutions," he added.