Marcos signs bill granting power to suspend fuel excise tax
President Ferdinand Marcos Jr. has signed into law the measure that gives him the authority to suspend or reduce fuel excise tax.
According to Republic Act 12316, the suspension or reduction may be done upon the recommendation of the Development Budget Coordination Committee and the Secretary of the Department of Energy.
The powers may be applied to specific petroleum products and implemented either as a full suspension or partial reduction.
Any suspension will be effective for up to three 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.
Furthermore, it will apply under conditions such as the average Dubai crude oil price reaching or exceeding $80 per barrel for one month, or a state of emergency or calamity has been declared, resulting in an extraordinary increase in domestic pump prices.
The measure was signed into law the same day Congress transmitted it to the Office of the President on March 24.
This new law comes amid rising pump prices triggered by tensions in the Middle East. On March 24, the DOE warned that diesel prices in Metro Manila may reach up to P144.20, while gasoline may surge to up to P112.4.
Marcos has already declared a state of national energy emergency in response to the Middle East conflict and what he called an "imminent danger" posed to the country's energy supply.
The declaration will remain in effect for one year. It authorizes the government to procure fuel and petroleum products to ensure a timely and sufficient supply, and if necessary, pay part of the contract amount in advance.
