President Ferdinand “Bongbong” Marcos Jr. has certified as urgent a bill that would grant him authority to temporarily suspend or reduce excise taxes on petroleum products amid rising global oil prices linked to tensions in the Middle East.

The proposed measure, House Bill No. 8418, would allow the President to suspend or cut excise taxes on fuel products to help cushion consumers from surging fuel prices.

The House of Representatives earlier approved the measure on second reading. The bill was principally authored by Speaker Faustino “Bojie” Dy III and House Majority Leader Ferdinand Alexander “Sandro” Marcos III.

The measure was sponsored on the floor by Marikina Rep. Miro Quimbo, chair of the House Committee on Ways and Means, who warned that rising global crude prices are placing pressure on Filipino households.

“This demonstrates the challenge we are facing- a global tremor with aftershocks hitting home and placing heavier pressure on Filipino families already struggling to stay afloat,” Quimbo said.

Under the proposed legislation, the President may suspend or reduce excise taxes on petroleum products upon the recommendation of the Development Budget Coordination Committee in coordination with the Department of Energy.

The authority may be exercised if the average Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds USD 80 per barrel for one month immediately preceding the suspension order, or if the President declares a national emergency or calamity resulting in extraordinary increases in domestic fuel prices.

Any suspension of the fuel excise tax may last for up to six months and may be extended for a maximum aggregate period of one year, subject to congressional action.

The authority granted under the bill will remain in effect until Dec. 31, 2028.

Quimbo said suspending the excise tax on fuel could help cushion the economic impact of rising oil prices.

“Ang pagsuspinde ng excise tax sa langis ang unang hakbang na kailangan nating gawin upang maibsan ang biglaang pagtaas ng presyo ng langis,” he said.

The bill also requires the President, through the finance secretary, to submit a report to Congress within 15 days from issuing the suspension order and every month thereafter detailing the basis for the move, estimated foregone revenues, and the expected impact on inflation, fuel prices and economic activity.

Should the government be granted emergency powers to suspend fuel excise taxes during periods of global oil price spikes?

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