Senator Francis “Kiko” Pangilinan has filed a bill that would allow the President to temporarily suspend excise taxes from petroleum products in times of global crisis, with the aim of cushioning the impact of currently surging fuel prices attributed to the escalating conflict in the Middle East.

The proposed bill, titled Senate Bill No. 1940, aims to give the President the authority to reduce or even suspend fuel excise taxes in times of global economic emergencies.

This bill is meant to amend Section 148 of the National Internal Revenue Code of 1997, which states that the suspension or reduction of excise taxes must come from a recommendation by the Development Budget Coordination Committee (DBCC) in consultation with the Department of Finance.

In Pangilinan’s bill, the President would be able to temporarily suspend or reduce the excise tax under the recommendation of DBCC in consultation with the Department of Energy (DOE) instead.

In the explanatory note of the bill, the senator stressed the need for faster policy changes in response to periods of high oil price volatility.

“Such measure would support timely relief, help ease inflationary pressures, and reduce cost burdens on Filipino consumers, particularly farmers, fisherfolk, transport workers, and small businesses,” the bill stated.

The measure also notes that any suspension or changes to excise taxes must immediately be lifted as soon as the time of crisis is over. 

Pangilinan said granting the President such authority during extraordinary circumstances would enable the government to respond more promptly to global oil price shocks.

“Granting the President continuing authority to suspend or reduce fuel excise taxes during extraordinary circumstances would enable a timely policy response to exceptional oil price volatility and mitigate its impact on Filipino consumers,” the bill read.

The senator said the proposal seeks to ease the burden of rising fuel prices on Filipino consumers and businesses.

The proposal comes as the Department of Energy warned of significant increases in fuel prices this week.

According to DOE projections, gasoline prices could increase by PHP 7 to PHP 13 per liter, diesel prices by PHP 17.50 to PHP 24.25 per liter, and kerosene prices by PHP 32 to PHP 38.50 per liter.

Senator Bam Aquino last Friday (March 6) introduced a similar bill, Senate Bill No. 1923, which would also allow the President to suspend fuel excise taxes to shield consumers from price shocks, while proposing targeted subsidies for public utility vehicle (PUV) drivers who are most affected by rising fuel costs.

How should the government respond to sudden spikes in global oil prices that directly affect Filipino consumers?

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