Fuel Tax Timeout? House Gives Marcos a New Oil-Price Relief Button

The House of Representatives has approved a bill that would allow President Ferdinand Marcos Jr. to suspend or reduce excise taxes on fuel, giving Malacañang a faster way to respond to the latest oil price shock. Lawmakers pushed the measure as the Philippines faces higher fuel costs linked to the ongoing war involving the US, Israel, and Iran.

A total of 247 lawmakers voted in favor of the proposal, while the three-member Makabayan bloc voted against it. Because Congress holds taxation powers, the President cannot simply cut fuel excise taxes on his own unless a law gives him that authority first.

Under the bill, Marcos could suspend the tax if Dubai crude hits $80 per barrel or if oil prices rise extraordinarily during a national emergency or calamity. If a similar measure passes the Senate, the bill will go to the President for signing after Malacañang already tagged it as urgent.

Rappler reported that a full suspension would lower kerosene prices by about P5 per liter, diesel by P6, and gasoline by P10. But there is a catch: the government could lose an estimated P136 billion in revenues from May to December if it fully removes the tax, kaya posibleng partial reduction lang ang piliin.

Critics from the Makabayan bloc said the move may offer only temporary relief and does not guarantee a long-term fix for rising fuel costs. Still, with pump prices surging and transport workers already under pressure, the bill shows how urgently officials are trying to contain the damage.

Source: Rappler