The Department of Energy (DOE) has endorsed the possible reduction of excise taxes on petroleum products after Dubai crude breached the $80-per-barrel trigger, potentially activating another layer of government assistance as motorists grapple with sharply higher pump prices.

Energy Secretary Sharon Garin said the average Dubai crude benchmark reached $99.41 per barrel from Aug. 13 to Sept. 11, exceeding the threshold prescribed under Republic Act No. 12316.

“This is already above the threshold set by law,” Garin told reporters on Tuesday.

The DOE has certified the breach and transmitted it to the Development Budget Coordination Committee (DBCC), which will evaluate whether to recommend an excise tax reduction.

“We have certified this and transmitted it to the DBCC for their consideration. This is up to the evaluation of the DBCC, our economic managers, on what our next step will be,” Garin said.

“This is a step forward in protecting our motorists, and we'll continue pushing for consumer relief amid the Middle East crisis in coordination with economic managers,” she added.

The potential tax relief comes as motorists absorb another steep increase in fuel prices beginning today.

Gasoline prices increased by P5.68 per liter, while diesel and kerosene rose by P4.31 and P4.62 per liter, respectively.

The DOE attributed the increases to the prolonged conflict in the Middle East, which has pushed international crude prices higher and disrupted global oil flows.

“The Middle East crisis is pushing crude oil prices upward on global markets,” Garin said.

The department expects the pressure to persist as the conflict, which has already lasted for nearly seven months, spreads across a wider area of the Middle East.

“Our forecast on this is that this will stay for a long time,” Garin said.

Apart from the potential excise tax reduction, the government continues to provide a P12-per-liter fuel subsidy for qualified public utility jeepney and Utility Vehicle Express drivers, which the DOE said may reach up to P1,800 per week for each qualified driver.

The DOE also sought to ease concerns over supply, saying the country's petroleum inventory remains above the minimum required level.

The country currently has more than 50 days of fuel inventory on average, compared with the legally required 15 to 30 days for private oil companies.

“Our inventory is in good shape, and this level of inventory has been maintained and even increased since the start of the Middle East conflict,” Garin said.

The government is also studying longer-term measures to strengthen the country's buffer against international supply disruptions, including strategic national petroleum reserve development that could eventually increase domestic stocks to around 120 days of supply.