The initiative gains urgency against the backdrop of renewed volatility in global oil markets, largely fueled by a deepening conflict in the Middle East involving US-Israel strikes on Iran. These geopolitical tremors threaten to disrupt supply chains and send domestic pump prices soaring, a prospect that disproportionately burdens the most vulnerable sectors of Filipino society, including transport workers and farmers. President Marcos Jr., currently on a working visit in New York, articulated the government’s proactive stance, emphasizing both existing reserves and ongoing efforts to secure additional supplies. “In terms of supply, we are in good shape,” Marcos Jr. stated, noting that not only does the Philippines possess a healthy domestic inventory, but additional shipments are also currently in transit. He further elaborated on the country's strategic diversification efforts, revealing that the government is actively "looking for other sources of fuel" and engaging in discussions with "many other countries who we normally do not buy oil from."
The legislative thrust to empower the President is embodied in House Bill No. 8292, recently filed by Speaker Faustino “Bojie” Dy III and Majority Leader Ferdinand Alexander “Sandro” Marcos. The proposed measure seeks to amend Section 148 of the National Internal Revenue Code, introducing a crucial provision that would enable the sitting president to suspend or reduce excise taxes on fuel products during declared national or global emergencies. This mechanism would be triggered under specific conditions: if the average price of Dubai crude oil reaches or exceeds $80 per barrel for a continuous period of at least three months, or if a state of national emergency or calamity, certified by the Secretary of Energy, results in extraordinary increases in domestic pump prices.
President Marcos Jr. has further clarified the precise threshold he envisions for exercising such powers. He specified that the emergency authority could be activated if the average price of Dubai crude oil breaches USD80 per barrel for at least one month. Importantly, he clarified that crossing this threshold would not automatically necessitate an excise tax reduction, but rather grant the President the discretion to implement the measure if deemed necessary. The President’s intent to certify the bill as urgent, once committee reports in both chambers of Congress are finalized, highlights his administration’s desire to expedite its passage into law. Such a certification would significantly accelerate deliberations during plenary debates, paving the way for a quicker implementation of these critical economic safeguards.
The proposed suspension or reduction of excise taxes, currently set at P6 per liter for diesel and P10 per liter for gasoline, would be temporary, with an initial effective period of up to six months. This period could be extended by Congress through a joint resolution, though the total suspension period is capped at one year. The bill also mandates that any such suspension could be applied to specific petroleum products and might entail either a full suspension or a partial reduction, depending on prevailing market conditions. Furthermore, it requires the President to submit detailed reports to Congress within 15 days of issuing a suspension order, and monthly thereafter, outlining the basis for the action, estimated foregone revenues, and the anticipated impact on fuel prices and inflation.
While the prospect of reduced fuel costs offers a welcome respite for consumers and industries, the Department of Finance (DOF) has sounded a note of caution regarding the potential fiscal implications. Finance Undersecretary Karlo Fermin Adriano previously warned that the country could face a substantial P136 billion decline in government revenues for 2026 if excise taxes on petroleum products are fully removed. Of this amount, P121.4 billion would directly result from excise tax reductions, with an additional P14.6 billion stemming from lower value-added tax (VAT) collections, which are directly proportional to fuel costs. This potential revenue shortfall presents a significant challenge, requiring the government to carefully weigh the benefits of price relief against the need for fiscal stability and funding for essential public services.
Beyond the legislative push, the administration is also taking direct action on market practices. The Presidential Communications Office (PCO) Undersecretary Claire Castro noted that the Department of Energy (DOE) has issued show-cause orders to 54 gasoline stations suspected of prematurely adjusting fuel prices. This move underscores the government’s commitment to preventing opportunistic price hikes and ensuring fair market conduct, especially during periods of heightened global uncertainty.
The comprehensive strategy being adopted by President Marcos Jr.’s administration reflects a deep concern for the economic well-being of Filipinos amidst an unpredictable global landscape. By simultaneously shoring up fuel supplies, seeking preemptive powers to mitigate price shocks through tax adjustments, and actively monitoring market fairness, the government aims to shield its citizens from the severest impacts of international crises. The outcome of the congressional deliberations on House Bill 8292 will be closely watched, as it will determine the extent of the President’s flexibility in navigating the economic challenges that lie ahead. The intricate dance between executive authority, legislative oversight, and the imperative of economic stability will define the Philippines’ resilience in these turbulent times.