House approves bill giving president authority to suspend fuel excise taxes
The House of Representatives has now approved a bill that would grant President Ferdinand "Bongbong" Marcos Jr. the authority to temporarily suspend or reduce excise taxes on fuel during national emergencies.
Per The Philippine STAR, a total of 247 lawmakers voted in favor of the bill on its third and final reading on March 16, with only three lawmakers from the Makabayan bloc voting against it.
The bill now only needs the approval of the Senate before it can be sent to Marcos to sign it into law. The chief executive previously certified the measure as urgent amid the high fuel prices brought about by the tensions in the Middle East.
Under the proposed measure, the president is given the authority to suspend fuel excise taxes during national or global economic emergencies to prevent sharp increases in pump prices, electricity rates, and transportation fares.
This is upon the recommendation of the Development Budget Coordination Committee, in coordination with the Department of Energy.
The authority may be exercised if the average Dubai crude oil price based on the Mean of Platts Singapore reaches or exceeds $80 per barrel for one month immediately preceding the suspension order, or if the president declares a national emergency or calamity that leads to extraordinary increases in fuel prices locally.
The suspension will be effective for up to six months and may be extended for a maximum aggregate period of one year.
The authority granted to the president will remain in effect until Dec. 31, 2028.
Marikina City Rep. Miro Quimbo sponsored the bill on the floor as he stressed that the conflict in the Middle East is "placing heavier pressure on Filipino families already struggling to stay afloat."
"Given the challenge we are facing, we cannot afford any delay in passing this legislation that empowers the President to suspend excise taxes on fuel," he said.
"Ang pagsuspinde ng excise tax sa langis ang unang hakbang na kailangan nating gawin upang maibsan ang biglaang pagtaas ng presyo ng langis. Totoo, may kaakibat itong sakripisyo. Bababa ang pondo ng gobyerno. Ngunit ang sakripisyong ito ay para sa kapakanan ng mga mamamayan at ng ating ekonomiya," he added.
The bill comes as the Department of Energy recently warned of a possible price increase for fuel resources that could go as high as P114 per liter this week.
The government is unable to control fuel prices since the oil industry is deregulated, meaning oil companies are obligated to only report and justify their price adjustments to the DOE.
Tensions in the Middle East escalated after Israel, with support from the United States, carried out airstrikes on Iran on Feb. 28 that killed Iranian Supreme Leader Ali Khamenei. The resulting retaliatory attacks have destabilized the region and rattled global markets, including the energy sector.
The Philippines is particularly vulnerable to the ongoing conflict in the Middle East as it imports about 98% of its crude oil from the region, according to the Philippine Information Agency. Countries such as Saudi Arabia, Iraq, and the United Arab Emirates are among the world’s leading oil exporters.