Finance Secretary Frederick Go said the country’s economic managers will engage with the House of Representatives on a possible temporary reduction in oil excise taxes as global fuel prices continue to rise amid the conflict in the Middle East.

In a statement, Go said the potential precautionary measure of reducing excise taxes on oil remains subject to further deliberation and congressional approval, noting that the policy would serve as an emergency tool the President may use to safeguard Filipino consumers.

“[T]he Economic Team will work with Congress to secure authority for the President to temporarily reduce excise taxes on fuel should the price of Dubai crude oil exceed US$80 per barrel,” he said.

“To be clear, this does not mean the authority will be automatically exercised. It is a precautionary measure — a ready policy tool that the President may use, if necessary, to act swiftly in protecting Filipino consumers and safeguarding the broader economy,” Go added.

The Philippine oil excise tax is a fixed levy on fuel imposed under the TRAIN Law, adding a specific amount to fuel prices regardless of global oil price movements. Current rates are P10 per liter for gasoline, P6 per liter for diesel, P5 per liter for kerosene, and P3 per kilogram for LPG. The tax is collected when fuel is imported or produced and is typically passed on to consumers through higher pump prices.

Senators on Tuesday expressed support for granting President Ferdinand Marcos Jr. emergency powers to cut excise taxes on petroleum products to cushion the potential inflationary impact of the ongoing Middle East conflict. The President himself has openly explored the possibility of temporarily reducing excise taxes to help preserve the purchasing power of Filipino consumers.

“It will not be permanent. It will be something we will remove as soon as the crisis is over,” he said.

Meanwhile, Go said the government is closely monitoring developments surrounding the ongoing unrest involving Iran, including the duration of the conflict and the potential for sustained increases in global oil prices.

“The government is closely monitoring developments arising from the ongoing conflict involving the United States, Israel, and Iran, particularly its potential impact on global oil markets and the Philippine economy,” he said.

The conflict escalated last weekend following the intervention of the United States. Fighting has since spread across parts of the region, leaving nearly 900 people dead, including Iranian Supreme Leader Ali Khamenei.

The Strait of Hormuz — which accounts for roughly 20 percent of the world’s oil supply and 30 percent of globally traded crude — has effectively been shut down due to the conflict, with its northern coast located within Iranian territory.

Recent trading data shows Brent crude at around $83.80 per barrel and West Texas Intermediate (WTI) at about $76.60, roughly $10 to $15 higher than levels before the conflict escalated.

Go said that despite potential supply disruptions, the Philippines maintains adequate buffers for domestic oil supply, enough to cover about two months of national demand.

“The Philippines maintains an adequate oil buffer equivalent to approximately 50 to 60 days of national demand, providing a cushion against short-term price volatility. Oil supply is also secure, given the country’s flexibility to source from multiple oil-producing states,” he said.

Locally, pump prices are expected to rise sharply, with industry sources estimating diesel prices could increase by up to P10.20 per liter, while gasoline may climb by as much as P5.50 per liter starting Tuesday next week.

“In line with the directive of the President, the Department of Energy is in active discussions with oil companies to stagger pump price adjustments,” Go said.