Senate approves emergency powers for President Marcos to suspend fuel excise taxes

The Senate on Tuesday unanimously approved on third and final reading a measure granting emergency powers to President Ferdinand “Bongbong” Marcos Jr., allowing him to suspend or reduce fuel excise taxes amid the ongoing conflict in the Middle East.

During the plenary session, 17 senators voted in favor of Senate Bill No. 1982, with no objections or abstentions.

The measure, titled “An Act authorizing the President to suspend or reduce excise tax on petroleum products amending for the purpose Article 148 of the National Internal Revenue Code, as amended,” seeks to give the President flexibility in addressing fuel price surges.

Under the bill, the President may exercise these powers when the average price of Dubai crude oil exceeds $80 per barrel for one month prior to the suspension or reduction of excise taxes.

The House of Representatives of the Philippines had already approved its counterpart measure on third and final reading a day earlier.

Last week, Marcos certified the bill as urgent, citing the need to respond swiftly to the impact of the Middle East crisis on global oil prices.

During interpellation, Senator Pia Cayetano, who sponsored the measure, said consumers could feel the effects of reduced fuel prices within 30 to 45 days.

She added that the Department of Energy (DOE) has begun monitoring fuel price movements.

“‘Yung one month period sir kasi, can happen immediately because it’s the past 30 days eh. So from the time na ma-authorize natin sila and the going rate now, meron na silang 30 days data. Meron na eh. So from the time that this becomes a law, they could potentially suspend the excise tax,” Cayetano said.

Citing data from the Department of Finance (DOF), she noted that gasoline prices could drop by as much as P11.2 per liter, while diesel prices may decrease by P6.72 per liter.

Meanwhile, Senate President Pro Tempore Panfilo “Ping” Lacson proposed shortening the period for averaging Dubai crude oil prices, based on Mean of Platts Singapore (MOPS), from one month to two weeks before triggering the suspension of excise taxes.

He explained that a shorter period could also allow the government to reinstate the excise tax sooner, helping limit potential revenue losses.

“With all due respect, two weeks is not irrelevant. It has a big effect on consumers. Ang two weeks na matitipid mo sa pagkarga ng gas, malaking bagay ‘yan,” Lacson said.

“I will not make this suggestion kung walang Iran war. Kung iba ang circumstances, hindi ako gagawa. These are extraordinary times, pwedeng mag-spike hanggang $200 per barrel,” he added.

-Paraluman News