Lawmakers push to scrap oil taxes as fuel prices climb

Amid continuous fuel price hikes, lawmakers on Tuesday renewed calls to scrap taxes on oil products as pump prices are projected to increase by nearly P2 per liter this week.

House Assistant Minority Leader and Gabriela Women’s Party Rep. Sarah Elago urged the Marcos administration to immediately remove the excise tax and the 12% value-added tax on oil products as tensions between the United States and Iran threaten to push global crude prices higher.

Fuel firms have cited renewed conflict in the Middle East as a reason for the expected increase.

“Nagliliyab na ang patuloy na pagtaas ng presyo ng bilihin, sinilaban pa sa panibagong taas presyo sa langis,” Elago said.

“Oil firms are quick to use the US-Israel-instigated conflict in the Middle East as an excuse to impose massive price hikes, while ordinary Filipinos shoulder the burden through higher transport fares, rising food prices, and increased cost of basic goods.”

Elago said the continued imposition of excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, along with the VAT on oil, worsens the impact of global price volatility on consumers.

“At a time when wages remain low and inflation continues to erode household incomes, the government must act decisively. Scrapping the excise tax and VAT on oil is an urgent and concrete measure to provide immediate relief to the public,” she said.

She reiterated her push for the passage of House Bill 4774, or the Presyo Ibaba Act, which seeks to remove excise taxes on oil and exempt essential goods and services from VAT.

“Kapag may paggalaw sa pandaigdigang merkado dahil sa sigalot, para bang binobomba tayo ng taas presyo. Pero kapag may rollback, napakabagal ng baba. Sobra na ang panggagatas sa mamamayan. Dapat na agad na ipasa ang Presyo Ibaba Act,” Elago added.

Meanwhile, House Committee on Ways and Means Chairperson Atty. Miro Quimbo said he supports suspending the excise tax on fuel to shield consumers from rising global crude prices.

“I support calls to promptly suspend excise tax on fuel to protect our consumers amid escalating tensions in the Middle East and the strong possibility of rising global crude oil prices,” Quimbo said.

However, Quimbo noted that the President cannot suspend the fuel excise tax through executive action alone.

“Therefore, Congress must immediately pass a measure authorizing the President to suspend the excise tax on fuel during extraordinary circumstances, subject to clear and measurable triggers. Now is the time to prepare before prices surge further,” he said.

As the country marks International Working Women’s Day on March 8, Elago said women’s groups are expected to bring the call to scrap oil taxes to the streets in what could be the largest women-led protest mobilization of the year.