The House of Representatives on Wednesday approved on second reading a measure authorizing President Ferdinand “Bongbong” R. Marcos Jr. to temporarily suspend or reduce excise taxes on petroleum products when extraordinary conditions trigger sharp fuel price spikes that affect transportation, food and household costs.

House Majority Leader and Ilocos Norte Rep. Ferdinand Alexander “Sandro” Marcos, one of the bill’s authors along with Speaker Faustino “Bojie” Dy III, said the proposal is designed to give the government a responsive tool when global disruptions rapidly drive up fuel prices.

“This bill gives the President a measured tool to cushion that shock, with clear triggers, clear limits and clear reporting when the prices of fuel and basic commodities get too high. Proteksyon ito sa mga mamamayan sa biglaang pagsirit ng presyo ng mga pangunahing bilihin,” Marcos said.

The proposal, House Bill No. 8418, seeks to amend Section 148 of the National Internal Revenue Code of 1997 to allow the President to suspend or reduce excise taxes on petroleum products under specific conditions.

The measure allows the executive to activate the relief mechanism without waiting months for a new law during a crisis.

Lawmakers said the bill forms part of the House’s broader effort to prepare policy tools for sudden global disruptions, including conflicts that affect oil supply and drive domestic pump prices higher.

During plenary deliberations, Marikina Rep. Miro Quimbo, chair of the House Committee on Ways and Means, defended the measure, emphasizing that the authority granted to the President is limited and subject to safeguards.

Under the proposal, the President may exercise the authority only upon the recommendation of the Development Budget Coordination Committee and in coordination with the Secretary of Energy.

The authority may be triggered under two conditions.

The first trigger is when the Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately before the order to suspend or reduce excise taxes is issued.

The second trigger applies when a state of national emergency or calamity is declared and it results in extraordinary increases in domestic pump prices, as certified by the Secretary of Energy.

The measure allows the President to suspend or partially reduce excise taxes on specific petroleum products depending on the severity of the price surge.

To prevent abuse and protect government revenues, the bill limits the suspension or reduction period to six months per issuance, unless Congress extends or terminates the authority earlier through a joint resolution. The aggregate period may not exceed one calendar year.

The proposal also requires the suspension or reduction to be lifted once extraordinary conditions no longer exist. Excise tax rates will automatically revert to their original levels after the period expires.

To ensure transparency, the bill mandates that the President, through the Secretary of Finance, submit a report to both chambers of Congress within 15 days from the issuance of the order and every month thereafter.

The report must detail the factual basis for the action, the estimated revenue loss and the expected effects on inflation, fuel prices and overall economic activity.

The measure also requires implementing rules to be issued within 15 days from effectivity by the Department of Finance, Department of Budget and Management, Department of Economy, Planning and Development, Department of Energy and the Bangko Sentral ng Pilipinas, in coordination with the Bureau of Internal Revenue and the Bureau of Customs.

Marcos said the House moved the bill with urgency under the leadership of Speaker Dy to ensure the government is prepared for economic shocks that immediately affect Filipino households.

“Under Speaker Dy, we are moving with discipline and urgency because the costs that hit families do not wait for politics. Ang trabaho natin is to keep options ready, act when the triggers are met and make sure relief reaches people without delay,” Marcos said.