DOF: Suspending excise taxes on diesel, gasoline won’t provide ‘meaningful relief’

The Department of Finance (DOF) on Tuesday said suspending excise taxes on gasoline and diesel would not provide meaningful relief following price increases in recent weeks. 

Citing the Development Budget Coordination Committee (DBCC), DOF Secretary Frederick Go said the agency has determined that suspending excise taxes on diesel and gasoline would not likely provide meaningful relief, “as any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics.”

Still, Go said the government would continue to provide additional targeted and managed subsidies for sectors most affected by rising transportation fuel prices, such as public transit operators, drivers, commuters, as well as farmers and fisherfolk.

“This measured and targeted response is designed to deliver immediate relief, ensuring that support reaches those who need it most, while preserving fiscal space to sustain essential public services and respond to an unpredictable global environment,” Go said. 

The DBCC will continue to monitor global oil market developments and stands ready to adjust its policy response as needed, Go said. 

Meanwhile, Go said that the decision to fully suspend excise taxes on kerosene and liquefied petroleum gas (LPG) directly helps every Filipino family and small businesses such as carinderias. 

He said there would be an estimated savings of around P36.96 per 11-kg cylinder for LPG and P5.56 per liter of kerosene due to the suspension. 

Go emphasized that the relief is focused on the most vulnerable. 

“This means the benefits extend beyond the poorest households to also support middle-income families. For these families, every peso saved on fuel costs means more resources for food, education, and healthcare,” Go said. —AOL, GMA News