Senate: Marcos' emergency powers over fuel excise taxes OK’d on final reading

The Senate on Tuesday unanimously approved on third and final reading the measure granting emergency powers to President Ferdinand “Bongbong” Marcos Jr. so that he may suspend or reduce the fuel excise taxes amid the conflict in the Middle East.

During the plenary session, 17 senators voted in the affirmative, with no negative votes and no abstentions, to pass Senate Bill No. 1982, or “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.”

The measure grants the President emergency powers when the average Dubai crude oil price exceeds $80 per barrel for one month immediately preceding the suspension or reduction of the excise tax. 

The House of Representatives on Monday approved its counterpart measure on third and final reading on Monday. 

Last week, Marcos certified as urgent the bill granting him powers to suspend or cut fuel excise taxes amid the Middle East crisis. 

Effects

During the period of interpellation, Senator Pia Cayetano, who sponsored the measure, said the suspension or reduction of fuel excise taxes may result in lower pump prices in 30 to 45 days. She also said the Department of Energy (DOE) has started monitoring fuel prices.

“‘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. 

(The one month period can happen immediately because it’s the past 30 days. So from the time we can authorize them and considering the going rate now, they already have 30 days of data. They already have it. So from the time that this becomes a law, they could potentially suspend the excise tax.)

Citing the Department of Finance (DOF), she said prices of gasoline is expected to decrease by P11.2 per liter, and that of diesel will be cut by P6.72 per liter. 

Senate President Pro Tempore Panfilo “Ping” Lacson, meanwhile, recommended to reduce the period to average the Dubai crude oil price based on Mean of Platts Singapore (MOPS) from the present one month to two weeks before suspending excise taxes. 

He said the two-week period could work the other way, in which the government would restore the excise tax after two weeks so it would not lose more revenue.

“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 (the two weeks you’ll be able to save on gas, will be a big help),” 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.

(I will not make this suggestion if there is no Iran war. If the circumstances are different, I will not make the suggestion. These are extraordinary times, fuel prices could spike up to $200 per barrel.) — JMA, GMA Integrated News