Filipino business groups hailed the President’s recent signing of an executive order granting him temporary authority to reduce or suspend excise taxes on oil products, as domestic pump prices continue to surge due to the Middle East conflict.

The new measure allows the temporary removal or reduction of excise taxes on petroleum products — one of the largest components of fuel pricing — resulting in lower retail prices for gasoline, diesel and LPG.

Much-needed policy tool

The Philippine Exporters Confederation Inc. (PHILEXPORT) commended the decision as “a timely and much-needed policy tool to cushion the impact of double-digit fuel price hikes on exporters, manufacturers, logistics providers and consumers.”

“For exporters, especially MSMEs, transport and logistics costs are a major component of overall expenses. Any relief on fuel costs will help preserve competitiveness in already volatile global markets,” said PHILEXPORT president Sergio R. Ortiz-Luis Jr.

Strong support

Meanwhile, the United Portusers Confederation of the Philippines Inc. (UPC) expressed strong support for the government’s declaration of a state of energy emergency and the signing of the measure authorizing the chief executive to suspend or reduce excise taxes on petroleum products, saying the twin moves will help stabilize logistics costs and protect the country’s trade competitiveness.

“Fuel is the single most critical cost driver in port operations and logistics. When oil prices spike, the impact cascades immediately — from trucking and shipping lines to warehousing and last-mile delivery,” said UPC president Ma. Flordeliza C. Leong. “The declaration of an energy emergency and the flexibility to adjust oil taxes are timely lifelines that can temper cost surges and prevent further disruption across the supply chain.”

Proactive step

The American Chamber of Commerce of the Philippines also (AmCham) hailed the measure as “a proactive step toward addressing the country’s evolving energy challenges,” and expressed support for the government’s whole-of-government approach as outlined in the executive order. This includes directives to ensure bureaucratic efficiency, the unhampered movement of essential goods, people and services, and the application of necessary and proportionate compliance mechanisms.

“This development also presents a timely opportunity to advance priority reforms under Arangkada Philippines, including amendments to the Electric Power Industry Reform Act, strengthening the energy regulatory framework, accelerating renewable energy development, improving grid infrastructure, and encouraging greater private sector participation,” AmCham said in a statement.

The Financial Executives Institute of the Philippines likewise expressed support for the government’s objective of ensuring the continued availability of fuel and electricity, safeguarding critical services, and protecting vulnerable sectors under the UnifiedPackage for Livelihoods, Industry, Food and Transport.