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Advocates Philippines
Marcos Signs Law Allowing Fuel Tax Cuts During Oil Price Surges
Photo credit: PCO
President Ferdinand Marcos Jr. signed Republic Act No. 12316 on Wednesday, March 25, granting the President the authority to temporarily suspend or reduce excise taxes on petroleum products during periods of rising global oil prices.
The law amends Section 148 of the National Internal Revenue Code of 1997, as amended, and aims to cushion Filipino consumers from sharp increases in fuel costs.
Under RA 12316, the President may exercise this authority upon recommendation from the Development Budget Coordination Committee (DBCC) and in coordination with the Department of Energy (DOE). The measure is triggered when the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), reaches or exceeds $80 per barrel for one month.
The law allows flexibility in implementation, meaning the government may fully suspend or partially reduce excise taxes on specific petroleum products depending on prevailing economic conditions. Relief measures are time-bound, with each issuance limited to a specific period.
To ensure transparency, the law requires the administration to report to Congress on any suspension or reduction orders, including their policy basis, potential effects on inflation and fuel prices, and any fiscal impact. It also mandates that oil companies regularly submit pricing data to the DOE, while the Bureau of Internal Revenue and the Bureau of Customs provide Congress with updates on affected fuel imports.
The measure comes amid continued volatility in global oil markets, as governments worldwide explore ways to shield consumers from price shocks while maintaining fiscal stability.
The law amends Section 148 of the National Internal Revenue Code of 1997, as amended, and aims to cushion Filipino consumers from sharp increases in fuel costs.
Under RA 12316, the President may exercise this authority upon recommendation from the Development Budget Coordination Committee (DBCC) and in coordination with the Department of Energy (DOE). The measure is triggered when the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), reaches or exceeds $80 per barrel for one month.
The law allows flexibility in implementation, meaning the government may fully suspend or partially reduce excise taxes on specific petroleum products depending on prevailing economic conditions. Relief measures are time-bound, with each issuance limited to a specific period.
To ensure transparency, the law requires the administration to report to Congress on any suspension or reduction orders, including their policy basis, potential effects on inflation and fuel prices, and any fiscal impact. It also mandates that oil companies regularly submit pricing data to the DOE, while the Bureau of Internal Revenue and the Bureau of Customs provide Congress with updates on affected fuel imports.
The measure comes amid continued volatility in global oil markets, as governments worldwide explore ways to shield consumers from price shocks while maintaining fiscal stability.
Mar 25, 2026
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