Marcos and economic managers discuss fuel tax cut, suspension during Holy Week

The Development Budget Coordination Committee (DBCC) will meet this week to discuss the emergency powers to suspend or reduce the excise tax on fuel products, President Ferdinand ''Bongbong'' Marcos Jr. said Tuesday. 

''Noong March 25, nilagdaan ko ang Republic Act No. 12316. Itong batas na ito ay nagbibigay sa akin ng kapangyarihang suspindihin ang excise tax sa langis kapag kinakailangan,'' Marcos said in a video message.

(Last March 25, I signed Republic Act No.12316. This law grants me the power to suspend excise tax on oil, if necessary.) 

''Magtatagpo ang DBCC ngayong linggo para ibigay ang kanilang pag-aaral dito sa bagay na ito sa excise tax,'' he added. 

(The DBCC will meet this week regarding their study on suspending excise tax.)

Under Republic Act No. 12316, the President may, upon the recommendation of the DBCC, in coordination with the Secretary of Energy, suspend the imposition of or reduce the excise taxes on fuel under this Section when the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) reaches or exceeds Eighty US dollars (USD 80) per barrel for one (1) month immediately preceeding the issuance of the suspension or reduction order.

The law provides that any suspension or reduction of petroleum products shall be effective for a period not exceeding three months.

Further, it states that any suspension or reduction may be applied to specific petroleum products and can be implemented as a full suspension or partial reduction of the applicable excise tax rates. 

These are the excise taxes imposed on manufactured oils and other fuels 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

The retail prices of these fuel products could drop as much as indicated above if the President totally suspends fuel excise taxes.

The excise tax rates will automatically revert to their original levels without requiring further executive or legislative action upon the occurrence of either: “One (1) week after the one (1)-month average of Dubai crude oil price based on MOPS fall below Eighty US dollars (USD 80) per barrel as duly certified by the Department of Energy (DOE);” or after three months of the implementation. 

Oil firms are also required to submit monthly information to the DOE regarding the cost components of the petroleum products they sell during the suspension period.

From the week prior to the US-Israel attack against Iran (February 24 to March 2, 2026) until the fourth week of the crisis (March 24 to 30, 2026), pump prices in Metro Manila increased by high double-digits, data from the Department of Energy (DOE) showed.

Gasoline prices increased between 34% to 43%, while diesel prices went up by about 50%. Kerosene prices, meanwhile, saw a 45% jump since the outbreak of the global oil crisis. –NB/JMA, GMA News