President Ferdinand R. Marcos Jr. said the government will be closely monitoring global oil price trends before deciding whether to suspend excise taxes on fuel, amidst the unpredictability of events surrounding the ongoing conflict in the Middle East.

The President made the statement after a price and supply monitoring activity in San Juan City. He emphasizes that any action will depend on how global oil prices evolve.

“Depends on the trends. We have to watch the trends on oil prices,” Marcos said.

He noted that the situation remains uncertain, especially given the unpredictable trend of developments in that region.

“It’s very hard to say because it’s all speculation. We don’t know how long this will last. We don’t know what the effects are. We don’t know what will happen in the Strait of Hormuz,” he explained.

Marcos said the government is taking a flexible approach in responding to global developments, adjusting its actions based on prevailing conditions as they come.

“And when the situation calls for it, then we will see when to exercise that power and by how much,” he said.

The President’s authority to suspend or reduce fuel excise taxes comes from a measure approved by the Senate, which allows such action during periods of high global oil prices. The proposal sets a trigger mechanism tied to Dubai crude prices, enabling the government to temporarily ease fuel costs when international benchmarks rise.

Under existing provisions, both the Senate and the House of Representatives allow such action when the average price of Dubai crude reaches around USD 80 per barrel.

Marcos also assured the public that there are currently no supply issues involving petroleum products, which also include fuel-based fertilizer for farmers.

Should the government act early to suspend fuel taxes, or wait for clearer trends in global oil prices?

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Photo Credit: PCO Website