The House of Representatives of the Philippines has approved, on second reading, a measure that would allow President Ferdinand Marcos Jr. to suspend or reduce excise taxes on fuel products during periods of high global oil prices.
The proposal, House Bill No. 8418, seeks to amend Section 148 of the country’s tax code to give the President temporary authority to adjust fuel excise taxes under specific economic conditions. Lawmakers say the measure aims to give the government a faster policy tool to cushion the impact of rising fuel prices on consumers, transport operators, and businesses.
In retrospect, the fuel excise tax in the Philippines was significantly increased under the Tax Reform for Acceleration and Inclusion Law (TRAIN Law), which took effect in 2018 as part of the government’s comprehensive tax reform program. The law raised taxes on petroleum products to help fund infrastructure, social services, and other public programs.
However, lawmakers noted that sharp spikes in global oil prices have periodically raised concerns about inflation and higher transport costs, prompting calls for a mechanism that allows the government to intervene more quickly. Under the proposed legislation, the President may suspend or reduce the excise tax on petroleum products upon recommendation of the Development Budget Coordination Committee (DBCC) and other relevant economic agencies.
The authority would apply only under certain conditions, such as when international oil prices exceed a specific threshold or when economic conditions warrant government intervention to stabilize domestic fuel costs.
Lawmakers behind the measure argue that granting Marcos Jr. this authority could help mitigate the adverse economic impact of sudden fuel price increases without requiring lengthy legislative processes each time market conditions change. Moreover, supporters say the mechanism could provide quicker relief to sectors heavily affected by fuel costs, including public transportation, agriculture, and logistics.
Despite the second-reading approval, the proposal still needs to pass the third and final reading in the House before moving to the Senate for consideration. If both chambers approve, the bill will then be submitted to the President for signing.
Autocar’s Take
Fuel prices affect nearly every sector of the Philippine economy, from public transport to food to logistics. Giving Marcos Jr. the power to suspend or reduce fuel excise taxes is the most logical step to provide a faster response when global oil prices surge. In theory, this flexibility may help mitigate inflation’s impact and protect consumers from sudden cost spikes.
However, excise taxes also fund government programs and infrastructure. As such, any suspension must be carefully studied and balanced against potential revenue losses. If the bill moves forward into law, transparency and clear economic triggers will be essential. The real test will be whether the measure delivers genuine relief to motorists and commuters when it is most needed.
