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Advocates Philippines
Marcos Certifies Urgent Bill Allowing Fuel Tax Cuts Amid Rising Oil Prices
Photo credit: PCO
President Ferdinand Marcos Jr. has certified as urgent a proposed measure that would allow the president to temporarily suspend or reduce excise taxes on petroleum products, as the government moves to cushion Filipinos from rising fuel prices linked to tensions in the Middle East.
The certification, issued on March 12, allows Congress to fast-track deliberations on the bill by removing the usual requirement that measures be read on separate days before final approval. With the urgent status, lawmakers may approve the proposal on second and third reading on the same day if both chambers agree.
The proposal, currently being discussed in the House of Representatives of the Philippines as House Bill No. 8418, would grant the President temporary authority to reduce or suspend fuel excise taxes during periods of extraordinary increases in global oil prices.
Emergency tool against rising oil prices
Under the proposed measure, the President may suspend or reduce the excise tax on petroleum products for up to six months if global oil prices surge — specifically when the average price of Dubai crude exceeds $80 per barrel for at least one month.
The authority could remain in effect until December 31, 2028, giving the government flexibility to respond quickly to global oil shocks in the coming years.
The tax adjustment would be automatically lifted once global oil prices stabilize or when the authorized suspension period expires.
Fuel excise taxes were introduced under the Tax Reform for Acceleration and Inclusion Law, which took effect in 2018. Currently, the tax adds around ₱10 per liter to gasoline and about ₱6 per liter to diesel, costs that are typically passed on to motorists and businesses through pump prices.
Government officials say temporarily removing or reducing the tax could provide immediate relief for commuters, transport operators, and industries that rely heavily on fuel.
Energy officials have said that even a short suspension of the tax could significantly lower pump prices. Estimates indicate that a two-month suspension could reduce diesel prices by roughly ₱6 per liter, depending on global market conditions.
Global tensions affecting oil markets
The proposed emergency power comes as global oil markets face volatility due to escalating tensions in the Middle East, a region that plays a key role in global energy supply.
The Philippines imports around 90 percent of its oil requirements, making the country particularly vulnerable to disruptions in international supply and sudden price spikes.
Higher fuel prices often ripple through the economy by raising transportation costs, which can in turn push up the prices of food and other basic goods — a major concern for Filipino households already coping with rising living expenses.
Congress moving quickly
The House of Representatives of the Philippines approved the measure on second reading on March 11, while the Senate of the Philippines has begun hearings on similar proposals granting the President temporary authority over fuel excise taxes.
If enacted, the measure would give the government a faster mechanism to respond to sudden global oil price surges while providing relief to consumers affected by higher fuel costs.
Officials say the goal is to ensure that authorities can act quickly to soften the economic impact of volatile fuel prices while maintaining flexibility in fiscal policy.
The certification, issued on March 12, allows Congress to fast-track deliberations on the bill by removing the usual requirement that measures be read on separate days before final approval. With the urgent status, lawmakers may approve the proposal on second and third reading on the same day if both chambers agree.
The proposal, currently being discussed in the House of Representatives of the Philippines as House Bill No. 8418, would grant the President temporary authority to reduce or suspend fuel excise taxes during periods of extraordinary increases in global oil prices.
Emergency tool against rising oil prices
Under the proposed measure, the President may suspend or reduce the excise tax on petroleum products for up to six months if global oil prices surge — specifically when the average price of Dubai crude exceeds $80 per barrel for at least one month.
The authority could remain in effect until December 31, 2028, giving the government flexibility to respond quickly to global oil shocks in the coming years.
The tax adjustment would be automatically lifted once global oil prices stabilize or when the authorized suspension period expires.
Fuel excise taxes were introduced under the Tax Reform for Acceleration and Inclusion Law, which took effect in 2018. Currently, the tax adds around ₱10 per liter to gasoline and about ₱6 per liter to diesel, costs that are typically passed on to motorists and businesses through pump prices.
Government officials say temporarily removing or reducing the tax could provide immediate relief for commuters, transport operators, and industries that rely heavily on fuel.
Energy officials have said that even a short suspension of the tax could significantly lower pump prices. Estimates indicate that a two-month suspension could reduce diesel prices by roughly ₱6 per liter, depending on global market conditions.
Global tensions affecting oil markets
The proposed emergency power comes as global oil markets face volatility due to escalating tensions in the Middle East, a region that plays a key role in global energy supply.
The Philippines imports around 90 percent of its oil requirements, making the country particularly vulnerable to disruptions in international supply and sudden price spikes.
Higher fuel prices often ripple through the economy by raising transportation costs, which can in turn push up the prices of food and other basic goods — a major concern for Filipino households already coping with rising living expenses.
Congress moving quickly
The House of Representatives of the Philippines approved the measure on second reading on March 11, while the Senate of the Philippines has begun hearings on similar proposals granting the President temporary authority over fuel excise taxes.
If enacted, the measure would give the government a faster mechanism to respond to sudden global oil price surges while providing relief to consumers affected by higher fuel costs.
Officials say the goal is to ensure that authorities can act quickly to soften the economic impact of volatile fuel prices while maintaining flexibility in fiscal policy.
Mar 12, 2026
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