SEVERAL senators on Thursday presented proposals aimed at easing the impact of the sudden surge in the price of fuel following the escalation of tension in the Middle East. Sen. Francis “Chiz” Escudero called for amendments to the Tax Reform for Acceleration and Inclusion (Train) Law to automatically authorize the president to suspend or reduce excise and value-added taxes (VAT) on fuel when global oil prices breach government-set benchmarks. In a statement, Escudero said the current safeguard mechanism under the Train Law, or Republic Act (RA) 10963, is “too narrow,” and limits the president’s ability to respond quickly to fluctuations in oil prices. Under RA 10963, fuel excise taxes are suspended only under specific conditions, such as when the average Dubai crude oil price exceeds $80 per barrel for three consecutive months. Escudero argued that this mechanism is reactive and may not provide timely relief to consumers during force majeure events such as wars, geopolitical tensions, or global economic crises. He said his position has always been to grant the president automatic authority to adjust fuel taxes when global oil prices exceed the assumptions set under the Budget of Expenditures and Sources of Financing (BESF), which outlines the macroeconomic and fiscal assumptions underpinning the national budget. President Ferdinand Marcos Jr. has said he would seek emergency powers from Congress to temporarily reduce excise taxes on petroleum products if Dubai crude surpasses $80 per barrel. While welcoming the president’s plan as a “step in the right direction,” Escudero maintained that a permanent legislative amendment would provide a more efficient and predictable solution. Sen. Raffy Tulfo said key government agencies must coordinate closely to cushion the impact of rising fuel prices on farmers, fisherfolk, and public utility drivers. As chairman of the Senate Committee on Public Services, Tulfo convened officials from the Department of Transportation (DOTr), Department of Energy (DOE), Department of Agriculture (DA), and the Bureau of Fisheries and Aquatic Resources (BFAR) via Zoom Thursday to review existing fuel subsidy programs and discuss ways to improve the distribution of assistance. The meeting came a day the per-liter price of gasoline swelled by P1.90, diesel by P1.20, and kerosene by P1.50. Energy Undersecretary Sandy Sales told Tulfo the latest adjustments were part of regular weekly pricing movements, and were not yet directly linked to the conflict in the Middle East. However, Sales acknowledged that global petroleum prices are expected to climb further. He cited reports that Iran has shut down the Strait of Hormuz — one of the world’s most critical oil transit chokepoints, a development that could significantly constrain global oil supply and drive up prices. DOTr Assistant Secretary for Road Transport and Non-Infrastructure Jojo Reyes reported that P2.5 billion has been allocated under the 2025 General Appropriations Act for fuel subsidies. Agriculture Undersecretary Roger Navarro said that around P100 million remains from funds under the Bayanihan law enacted during the Covid-19 pandemic, which could be utilized as fuel subsidies for farmers. Tulfo rejected the amount as insufficient and urged the DA to identify additional funding sources. BFAR National Director Elizer Salilig reported that P50 million is currently deposited at the Development Bank of the Philippines (DBP) for fisherfolk fuel subsidies. Tulfo also questioned the policy requiring Dubai crude oil prices to reach $80 per barrel before fuel subsidies are triggered. Sen. Bam Aquino called for the immediate reactivation of fuel subsidies for transport sector workers. “We know that our jeepney drivers, tricycle drivers, our PUV (public utility vehicle) drivers will be heavily affected if there will be gasoline and diesel price increases,” Aquino said in a television interview Thursday. He allayed concerns over potential revenue losses if the excise tax on fuel products is suspended. He said that anti-corruption measures should be strengthened to augment government funds for services. Aquino has filed Senate Bill (SB) 1923 that seek to grant the president authority to suspend the excise tax on petroleum products during national or global economic emergencies. A similar measure, SB 1927, was filed by Sens. Pia Cayetano and Alan Peter Cayetano. Senate Bill 1927 amends Article 148 of the National Internal Revenue Code of 1997 to establish a standing mechanism that would allow immediate executive action in response to global oil market disruptions. In their explanatory note, the Cayetanos cited escalating conflicts in West Asia — home to key oil-producing nations such as Saudi Arabia, Iran, Iraq, Kuwait, Qatar, and the United Arab Emirates — as a major threat to global energy stability. They noted that even short-term instability can trigger rapid price surges in international oil markets. Just three days after the US and Israel launched aerial attacks on Iran, “gasoline prices in the international market already surged from $79.63 to $90.32 per barrel,” they said in the bill’s explanatory note. The bill underscores the Philippines’ vulnerability to global price shocks, pointing out that the country remains heavily reliant on imported petroleum products. In 2024, the Philippines imported approximately 340,600 barrels of liquid fuel, accounting for about 99.68 percent of its total petroleum supply, making it highly exposed to fluctuations in international markets. By embedding safeguards in the tax system itself, the government could act immediately to mitigate inflationary pressures without waiting for prior legislative approval, the Cayetanos said. Sen. Sherwin Gatchalian urged the government to consider tapping the president’s contingency fund to provide fuel subsidies to public transport drivers. Gatchalian agreed with his colleagues that the government should not wait for global crude prices to hit the trigger threshold before releasing assistance under the transport fuel subsidy program. He warned that the steady increases in pump prices are already placing significant pressure on drivers and commuters, even before the benchmark is reached. Aside from the early release of subsidies, Gatchalian also urged the energy department to review the current inventory levels and pricing practices of local oil companies to ensure that retail prices remain fair and reflect actual supply costs. Caritas Philippines, meanwhile, urged the government to shift to renewable sources of energy, warning that continued reliance on fossil fuels could deepen economic vulnerability. In a statement Thursday, the social action arm of the Catholic Bishops’ Conference of the Philippines (CBCP) said the crisis in the Middle East highlights how fossil fuels continue to shape geopolitics and expose import-dependent countries — like the Philippines — to economic risks. “When oil becomes entangled with war, the consequences ripple across the world, especially for vulnerable economies like the Philippines,” Caritas said. “The Philippines remains dangerously dependent on imported coal, oil, and gas. This dependence ties our national stability to conflicts beyond our control and exposes our people to the shocks of volatile global energy markets,” it said. “For Filipino families, rising oil prices mean immediate hardship: higher transport fares, rising food costs, increasing electricity bills, and deeper economic insecurity. The burden falls heaviest on workers, farmers, fisherfolk, and the urban poor,” Caritas said.