NATIONAL
Advocates Philippines
House Approves On Second Reading Bill Allowing Marcos To Cut Fuel Taxes During Price Surges
Photo credit: Congress PH
The House of Representatives has approved on second reading a measure that would allow President Ferdinand Marcos Jr. to temporarily suspend or reduce excise taxes on fuel products when global oil prices spike and start affecting the daily expenses of Filipino families.
The proposal, House Bill No. 8418, aims to give the government a faster tool to cushion the impact of rising fuel costs, which often ripple through transportation fares, food prices, and other household expenses.
Under the bill, the President may order the temporary suspension or reduction of fuel excise taxes if certain conditions are met. One such condition is when the average price of Dubai crude oil — a key benchmark for Asia Pacific markets — reaches or exceeds US$80 per barrel for at least one month immediately preceding the order.
The suspension or reduction may last up to six months per issuance, with rates automatically reinstated once conditions no longer warrant relief. The authority granted under the bill is reported to remain in effect until December 31, 2028, unless modified by Congress.
Faster Response to Global Oil Shocks
Senior Deputy Majority Leader Sandro Marcos said the measure is meant to give the government flexibility to respond quickly to sudden increases in global oil prices.
Lawmakers noted that because the Philippines imports nearly all of its petroleum, movements in the international oil market have a direct impact on domestic fuel prices and inflation.
Safeguards Included in the Bill
House Committee on Ways and Means Chairperson Miro Quimbo emphasized that the bill includes clear limitations and transparency requirements to balance consumer relief with the government’s revenue needs.
The suspension authority would be activated only upon recommendation by the Development Budget Coordination Committee and in coordination with the Department of Energy, ensuring multiple agencies assess the need for relief before implementation.
Next Steps
House Bill No. 8418 must still pass third reading in the House before being transmitted to the Senate for concurrence. Senate committees are also holding hearings on similar proposals to give the President emergency powers to address fuel price volatility.
Supporters say the measure could help shield Filipino consumers — especially transport drivers, farmers, and fisherfolk — from sudden increases in fuel costs, which often quickly ripple through the economy.
The proposal, House Bill No. 8418, aims to give the government a faster tool to cushion the impact of rising fuel costs, which often ripple through transportation fares, food prices, and other household expenses.
Under the bill, the President may order the temporary suspension or reduction of fuel excise taxes if certain conditions are met. One such condition is when the average price of Dubai crude oil — a key benchmark for Asia Pacific markets — reaches or exceeds US$80 per barrel for at least one month immediately preceding the order.
The suspension or reduction may last up to six months per issuance, with rates automatically reinstated once conditions no longer warrant relief. The authority granted under the bill is reported to remain in effect until December 31, 2028, unless modified by Congress.
Faster Response to Global Oil Shocks
Senior Deputy Majority Leader Sandro Marcos said the measure is meant to give the government flexibility to respond quickly to sudden increases in global oil prices.
Lawmakers noted that because the Philippines imports nearly all of its petroleum, movements in the international oil market have a direct impact on domestic fuel prices and inflation.
Safeguards Included in the Bill
House Committee on Ways and Means Chairperson Miro Quimbo emphasized that the bill includes clear limitations and transparency requirements to balance consumer relief with the government’s revenue needs.
The suspension authority would be activated only upon recommendation by the Development Budget Coordination Committee and in coordination with the Department of Energy, ensuring multiple agencies assess the need for relief before implementation.
Next Steps
House Bill No. 8418 must still pass third reading in the House before being transmitted to the Senate for concurrence. Senate committees are also holding hearings on similar proposals to give the President emergency powers to address fuel price volatility.
Supporters say the measure could help shield Filipino consumers — especially transport drivers, farmers, and fisherfolk — from sudden increases in fuel costs, which often quickly ripple through the economy.
Mar 11, 2026
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