Transport groups renew call for suspension of fuel excise tax


Several transport groups called anew on Sunday for the suspension of  excise tax on petroleum products, in anticipation of a huge spike in fuel prices seen next week.

Federation of Jeepney Operators and Drivers Association of the Philippines (FEJODAP) president Ricardo Rebaño said that they are appealing for the suspension of the fuel excise tax from three to four months.

He pointed out that fuel excise tax suspension is a better deal than asking another fare increase that will add another burden on commuters.

“Kahit ilang buwan lamang po hanggang sa ganito ang sitwasyon ng petroleum products, tumataas nang tumataas, siguro another suspensyon ng excise tax ang kinakailangan namin para naman magkaroon ng win-win solution itong diranaras naming problema kesa naman ma-tengga na naman ang public transport,” he said in a Super Radyo dzBB interview.

(We are asking for a few months' suspension of fuel excise tax until prices of petroleum stabilize, and so  we can have a win-win solution, instead of letting the public transport sector go idle again.)

An oil industry source said that the price per liter of diesel may increase by P6 up to P6.30, based on trading from October 3 to 7.

Gasoline prices, meanwhile, may go up by P1.10 to P1.40 per liter.

On the other hand, Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (PISTON) national president Mody Floranda echoed Rebaño's appeal, saying that aside from suspending the excise tax, the Oil Deregulation Law and TRAIN Law have to be amended as well.

“Talagang kailangang rebisahin ng gobyerno ang mga probisyon sa ilalim ng Oil Deregulation Law, ng TRAIN Law, ng e-vat, at excise tax sa produktong petrolyo sapagkat malinaw naman na hindi naman tayo lingguhan o buwanan umaangkat ng produktong petrolyo sa international market, kundi batay sa sinasabi ng Department of Energy,” he said.

(The government needs to revise the provisions under the Oil Deregulation Law, the TRAIN Law, the e-vat, and the excise tax on petroleum products because we do not import petroleum products on a weekly or monthly basis, but based on what the Department of Energy says.)


Floranda further said that a summit has to be conducted to discuss how to address the issues surrounding petroleum products in the country.

Earlier, the Department of Finance (DOF) cautioned the Marcos administration against suspending the collection of excise tax on petroleum products and suggested alternative ways to mitigate the impact of fuel price hikes.

The agency said that suspending taxes on fuel products is "not the most efficient approach to alleviating the conditions of affected sectors.”

Meanwhile, Department of Energy Oil (DOE) Industry Management Bureau Atty. Rino Abad said Sunday that their estimated increases will be over P5 per liter for diesel, over P1 per liter for gasoline, and over P3 per liter for kerosene.

“Sa usapin kung magtatagal ‘to, admittedly, ang initial impact nag-increase dahil may panic mode. Pero may usapin kasi diyan kung kaya nilang i-sustain kasi ito’y pronouncement diba, so mangyayari pa lang ito sa November,” he said in a separate dzBB interview.

(As to whether the high prices will last, admittedly, the initial impact is that it increased because there is panic mode. But there are questions as to whether they can sustain it because it is still a pronouncement, so it will only happen in November.)

Abad was referring to reports that ministers from the 13-nation Organization of the Petroleum Exporting Countries (OPEC) cartel and its 10 Russian-led allies agreed to reduce production by two million barrels per day from November.

It is the biggest cut since the height of the COVID pandemic in 2020, and it came despite concerns it could fuel inflation further and push central banks to further hike interest rates and therefore increase the chances of a global recession. —LBG, GMA News