The House Committee on Ways and Means on Tuesday approved the bill allowing President Ferdinand R. Marcos Jr. to suspend or reduce excise tax on fuel amid tension in the Middle East

The substitute bill specifically allows the President to reduce excise tax on fuel products if the average Dubai crude oil price exceeds USD80 per barrel for one month immediately preceding the suspension or reduction of the excise tax.

However, the fuel tax suspension may only be imposed for a maximum of six months.

The bill also provides that the President will only have the additional authority until Dec. 31, 2028.

Leyte Rep. Ferdinand Martin Romualdez welcomed the approval of a substitute bill, saying it would give the President flexibility in responding to the oil crisis and price volatility and help the people, especially the poor and the vulnerable.

“An excise tax suspension or reduction will be a big relief to our people at this time of soaring fuel prices. A suspension would mean a retail price reduction of PHP6 to PHP10 per liter,” Romualdez said in a statement.

Romualdez’s House Bill (HB) No. 5779 was one of 15 bills and two joint resolutions tackled by the House Committee on Ways and Means in its hearing Tuesday.

He proposed to permanently scrap excise taxes on oil products and provide lasting relief to the public.

“That would have been the ideal measure, but I also understand the need for the government to continue relying on billions in excise tax collections for vital social services,” he said.

At the same time, he called on oil companies to reveal the volume of their respective inventories on which they have already paid excise levies.

He made the call in the wake of statements made in the hearing by oil company representatives that they would first have to exhaust their stocks on which they have paid excise tax before they could reflect a reduction in retail prices.

“They should declare which existing stocks will be sold with excise taxes and which incoming supply will be sold without these levies, so our people are properly guided,” Romualdez said.

Bicol Saro Party-list Rep. Terry Ridon said the bill represents a timely and decisive response by Congress to the growing volatility in global oil markets.

“With tensions in key petroleum-producing regions threatening to disrupt global supply and push fuel prices higher, the Philippine government must have the necessary tools to respond quickly and decisively to protect Filipino consumers,” the chairperson of the House Committee on Public Accounts said in a separate statement.

He said the measure reflects a strong and unified commitment by the government to respond decisively to an international crisis that directly affects the welfare of the Filipino people.

Biz Group Backs Granting PBBM Emergency Powers

Philippine Chamber of Commerce and Industry (PCCI) President Perry Ferrer, in a statement Tuesday, said granting the President emergency powers to help address the fuel price hikes and stabilize it will benefit the economy.

Ferrer said PCCI supports “whatever means –whether reducing excise tax, VAT (value added tax), or tapping other funding sources – because we are in a crisis.”

“If the market cannot absorb these pending price increases, hindi tatakbo ang economy (the economy will not run),” he said.

This, as the ongoing conflict in the Middle East affected oil supply, resulting in the rise of domestic fuel prices to as much as PHP38.50 per liter, which will be implemented on staggered basis this week.

“Our request to government is to absorb temporarily the fuel price increases. Hopefully, mabigyan ng authority ang Presidente (the President will be given authority) to exercise and use other means that will help cushion potential shocks this week or next week,” Ferrer said. (PNA)