Fuel Tax Timeout? Marcos Gets New Power as Oil Prices Keep Climbing

Tag: Economy
Person/Subject: Ferdinand Marcos Jr.

President Ferdinand Marcos Jr. has signed a new law that gives him the power to suspend or reduce excise taxes on fuel if global oil prices stay painfully high. The move came a day after Malacañang declared a state of national energy emergency, showing just how serious the supply problem has become.

Under Republic Act No. 12316, the trigger is clear: if Dubai crude averages at least $80 per barrel for one full month, the President may step in and cut or pause the tax. But hindi rin siya open-ended. Any suspension can last only up to three months at a time, and the total relief cannot go beyond one calendar year.

The law also puts a deadline on that emergency power. Marcos can only use it until December 31, 2028, and the regular tax rates automatically return once oil prices cool down below the threshold for a week, or after the three-month window ends. In short, this is meant as a temporary pressure valve, not a permanent tax rewrite.

Rappler reported that oil firms will also have to submit monthly cost breakdowns to the Department of Energy while the tax relief is in effect. That requirement matters because government will want proof that any reduction really helps pump prices and is not just absorbed somewhere in the pricing chain.

For motorists and businesses already getting squeezed, this law is basically a standby weapon against another round of brutal fuel hikes. Hindi pa automatic ang rollback, but it gives the government a faster way to respond if the global crisis keeps pushing local prices higher.

Source: Rappler