Palace: Fuel excise taxes must be balanced amid incoming oil supply

Palace Press Undersecretary Claire Castro said the government must strike a balance when asked whether it could reduce its share of revenues from fuel sales during a press conference on Monday.

“Taxation is the lifeblood of the government, which is why everything must be balanced,” Castro said in a mix of English and Filipino.

Fuel excise taxes are imposed on incoming oil shipments, currently set at 22 percent for gasoline and 29 percent for diesel.

Castro added that, according to Department of Energy Secretary Sharon Garin, the prices of petroleum products are largely dictated by international traders and suppliers.

“The government has no authority to cut the price of gas,” Castro said.

With about 98 percent of its oil imported from the Middle East, the Philippines remains highly vulnerable to global price fluctuations, which in turn drive up the cost of goods and place additional pressure on consumers.

She added that projects, policies, and expenditures that may be scaled down to reduce funding requirements will be announced after President Ferdinand Marcos Jr.’s meeting with the Development Budget Coordination Committee (DBCC).