Recommendation on fuel excise tax cut out today

THE government’s economic managers are set to present President Ferdinand Marcos Jr. with their recommendation on whether or not to cut or suspend excise taxes on fuel to cushion the impact of rapidly rising oil prices, Malacañang said on Monday. “The DBCC had a meeting and assessed the implication of rising global oil prices and evaluated the possible policy responses including measures on fuel excise taxes,” Presidential Communications Office (PCO) Undersecretary Claire Castro said in Filipino in a press briefing, referring to Development Budget Coordination Committee. “They have formulated a recommendation and will meet with the president tomorrow (Tuesday) for approval. If he sees that the recommendation is correct, appropriate, and beneficial for the people and the country, the president will approve it promptly,” she added. Before the Holy Week break, the Department of Budget and Management (DBM), which chairs the DBCC, said a final policy direction on the reduction or suspension of the excise taxes on petroleum products was still being determined. Marcos last month signed into law Republic Act (RA) 12316, a measure granting him the authority to temporarily suspend or reduce excise taxes on petroleum products and providing the government with a key tool to address the impact of rising fuel costs as a result of the war in the Middle East. The law allows the chief executive to suspend or reduce excise taxes upon the recommendation of the DBCC, in coordination with the Department of Energy (DOE). As stated in RA 12316, the president may exercise his emergency powers if the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), reaches or exceeds $80 per barrel for at least one month. Based on historical trading data, the MOPS average for gas and diesel for March 2026 MOPS was about $178.40 per barrel, well above the $80 trigger point set in the law. Prices were highly volatile, starting the month around $139 and climbing steadily to close at $192.86 on March 31. The suspension or reduction may last up to three months per instance, with a maximum total duration of one year. Taxes would automatically return to original rates if oil prices fall below $80 per barrel or after the three-month period expires. Marcos earlier said using his emergency powers is a “complicated calculation” dependent on global oil price trends. Castro backed the president’s statement, reiterating that there must be a balance between bringing down fuel prices and the government’s income to sustain its programs for the public, particularly those meant to mitigate the effects of the fuel and energy crises. “Let’s remember that our taxes are the lifeblood of the government. So, we must balance everything,” Castro said.

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