Economist argues against the rich solely benefiting from fuel tax suspension

An economist said on Saturday that the wealthy are not the only ones who will benefit once the collection of fuel excise tax is suspended.

“Malaking bagay na tanggalin 'yung 5 piso, 6 na piso, 10 piso na excise tax. 'Yung sinasabi nila na ang makikinabang diyan ay ang mayayaman, hindi ako naniniwala dun,” Emmanuel Leyco, president and chief economist of Credit Rating and Investor Services Philippines, said in an interview on Super Radyo dzBB.

President Ferdinand Marcos Jr. on Wednesday signed Republic Act 12316, which gives him emergency powers to suspend or reduce fuel excise tax amid rising oil prices due to the Middle East conflict.

Malacañang said the President may issue an executive order suspending or reducing the excise tax on fuel products by April 12 or April 13.

“Mas malaki ang binili ng mayayaman na petrolyo kaysa sa mahihirap, natural kasi sila ang mas marami ang pera; mas marami silang sasakyan,” Leyco said.

(The rich buy more petroleum than the poor, naturally, because they have more money and they have more vehicles.)

“Pero kapag tinignan natin 'yung binibiling petrolyo ng mahihirap, ito ang inilalagay sa mga jeep, ito ang inilalagay sa mga tricycle… sa mga sasakyan na ipinangpapasada,” he added.

(But if you look at the petroleum being bought by the poor, they put it into jeepneys, tricycles… they put it into vehicles for public transportation.)

Below is a list of the excise taxes imposed on manufactured oils and other fuels that have been in place since 2020, in line with the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law:

• Lubricating oils and greases - P10.00 per liter
• Processed gas - P10.00 per liter
• Waxes and petrolatum - P10.00 per kilogram
• Denatured alcohol - P10.00 per liter
• Naptha, regular gasoline, pyrolysis gasoline - P10.00 per liter
• Unleaded premium gasoline - P10.00 per liter
• Aviation turbojet fuel, aviation gas - P4.00 per liter
• Kerosene - P5.00 per liter
• Diesel fuel oil - P6.00 per liter
• Liquefied petroleum gas - P3.00 per kilogram
• Asphalts - P10.00 per kilogram
• Bunker fuel oil - P6.00 per kilogram
• Petroleum coke - P6.00 per metric ton

Retail prices could decrease by the amounts mentioned above if Marcos completely suspends the excise taxes. —Ted Cordero/VBL, GMA Integrated News