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Advocates Philippines
Senate Approves Bill Allowing Marcos To Cut Fuel Taxes During Price Spikes
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The Senate of the Philippines has approved a measure granting Ferdinand R. Marcos Jr. temporary authority to suspend or reduce fuel excise taxes during periods of extraordinary increases in global oil prices.
In a 17–0–0 vote, senators passed the proposed measure on third and final reading, with no votes against and no abstentions.
The bill aims to give the President the flexibility to quickly respond to sharp increases in fuel prices that affect transportation costs, electricity rates, and the prices of basic goods.
Why lawmakers support the measure
Fuel prices in the Philippines are closely linked to global oil markets. When international crude prices rise, local pump prices typically follow, putting pressure on household budgets and business operations.
Lawmakers backing the measure said allowing the President to temporarily adjust fuel taxes would help cushion the impact of sudden price spikes without waiting for Congress to pass a new law each time global oil prices surge.
Currently, petroleum products in the country are subject to excise taxes under the Tax Reform for Acceleration and Inclusion Law, which took effect in 2018 as part of a broader tax reform program designed to raise government revenue for infrastructure and social services.
However, critics have long argued that higher fuel taxes can worsen the impact of rising global oil prices on consumers.
How the authority would work
Under the proposed law, the President may temporarily suspend, reduce, or adjust the excise tax on petroleum products when global oil prices reach levels that significantly affect the domestic economy.
Supporters say the measure would serve as a rapid-response tool during economic disruptions, particularly when transportation costs surge and inflation threatens household spending.
The authority would be exercised only under specific conditions and for a limited period to ensure safeguards remain in place.
Next step in Congress
If the House passes a similar version, the two chambers will reconcile their versions before sending the final bill to the President for signing.
Economic managers have said any suspension of fuel excise taxes must balance consumer relief with the government’s revenue needs, since fuel taxes help fund key public programs and infrastructure projects.
Supporters of the bill, however, say the goal is to give the government the ability to act quickly when fuel prices spike and prevent the ripple effects from hitting Filipino households too hard.
In a 17–0–0 vote, senators passed the proposed measure on third and final reading, with no votes against and no abstentions.
The bill aims to give the President the flexibility to quickly respond to sharp increases in fuel prices that affect transportation costs, electricity rates, and the prices of basic goods.
Why lawmakers support the measure
Fuel prices in the Philippines are closely linked to global oil markets. When international crude prices rise, local pump prices typically follow, putting pressure on household budgets and business operations.
Lawmakers backing the measure said allowing the President to temporarily adjust fuel taxes would help cushion the impact of sudden price spikes without waiting for Congress to pass a new law each time global oil prices surge.
Currently, petroleum products in the country are subject to excise taxes under the Tax Reform for Acceleration and Inclusion Law, which took effect in 2018 as part of a broader tax reform program designed to raise government revenue for infrastructure and social services.
However, critics have long argued that higher fuel taxes can worsen the impact of rising global oil prices on consumers.
How the authority would work
Under the proposed law, the President may temporarily suspend, reduce, or adjust the excise tax on petroleum products when global oil prices reach levels that significantly affect the domestic economy.
Supporters say the measure would serve as a rapid-response tool during economic disruptions, particularly when transportation costs surge and inflation threatens household spending.
The authority would be exercised only under specific conditions and for a limited period to ensure safeguards remain in place.
Next step in Congress
If the House passes a similar version, the two chambers will reconcile their versions before sending the final bill to the President for signing.
Economic managers have said any suspension of fuel excise taxes must balance consumer relief with the government’s revenue needs, since fuel taxes help fund key public programs and infrastructure projects.
Supporters of the bill, however, say the goal is to give the government the ability to act quickly when fuel prices spike and prevent the ripple effects from hitting Filipino households too hard.
Mar 17, 2026
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