Speaker Faustino “Bojie” G. Dy III and House Majority Leader Ferdinand Alexander “Sandro” A. Marcos of Ilocos Norte have filed a bill authorizing the President of the Philippines to suspend or reduce excise taxes on petroleum products during national or global economic emergencies to help cushion Filipinos from rising fuel prices.

Marcos said House Bill (HB) No. 8292 seeks to amend the National Internal Revenue Code to give the President the authority, upon recommendation from the Secretary of Finance and in coordination with the Secretary of Energy, to temporarily suspend or reduce excise taxes on fuel when extraordinary conditions drive global oil prices higher.

The measure allows the President, currently Ferdinand Marcos Jr., to act when public interest requires a suspension or reduction of excise taxes on petroleum products.

“The measure comes amid renewed volatility in global oil markets due to geopolitical tensions in the Middle East, which threaten to disrupt supply and push fuel prices higher,” Marcos said.

Dy and Marcos noted that the Philippine economy remains highly vulnerable to global petroleum market fluctuations. Tensions involving the United States, Israel, and Iran raise fears of supply disruptions and surging crude prices.

Because the Philippines imports nearly 90 percent of its petroleum from the Middle East, geopolitical tensions in the region can quickly drive up domestic fuel prices, fueling inflation and eroding consumers’ purchasing power, they added.

Under the bill, the President may suspend or reduce excise taxes on fuel if the average Dubai crude oil price reaches at least $80 per barrel for three consecutive months, or if a national emergency or calamity causes extraordinary increases in domestic pump prices.

Any suspension may apply to specific petroleum products and will last up to six months, subject to extension by Congress but not exceeding one year in total. The President would also be required to submit a report to Congress within 15 days of issuing the suspension order, and monthly thereafter, detailing its basis, the estimated foregone revenues, and the expected impact on fuel prices and inflation.

The two House leaders emphasized that rising fuel costs hit vulnerable sectors the hardest.

“Rising fuel prices impose a disproportionate burden on the most vulnerable sectors of society, particularly farmers, fisherfolk, public transport operators, small enterprises, and low-income households whose livelihoods are directly affected by increases in petroleum costs,” they said.

“In times of national emergency or sudden global disruption, the government must be equipped to act swiftly to mitigate the impact of these shocks and safeguard the welfare of the Filipino people,” they added.

According to Dy and Marcos, the measure provides the government with a flexible policy tool to stabilize prices during periods of severe volatility.

“By providing a targeted and time-bound policy mechanism, the government is able to respond promptly to extraordinary fuel price volatility, ease the burden on consumers, and help stabilize domestic prices during the period of severe economic disruption,” they said.