Bam Aquino: Gov’t may suspend excise tax on fuel under TRAIN law amid Middle East conflict

Senator Bam Aquino on Monday said the government could automatically suspend excise taxes on fuel under the TRAIN Law once prices hit $80 per barrel for three consecutive months, amid rising global oil prices due to the Middle East conflict.

Aquino noted that the Tax Reform for Acceleration and Inclusion (TRAIN) Law provides for the automatic suspension of excise taxes on petroleum products if the average global oil price reaches $80 per barrel for three consecutive months.

“Makatutulong ang suspension na ito para mabawasan ang bigat ng inaasahang pagtaas ng presyo ng langis dahil sa kaguluhan sa Middle East,” Aquino said.

(The suspension will help ease the burden of the expected increase in oil prices due to the conflict in the Middle East.)

Aquino warned that rising oil prices could trigger higher food costs, adding pressure on Filipino households.

“These taxes have contributed to higher fuel prices, which in turn cascade into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos,” he said.

Fuel prices are set to increase again this week, and may be further worsened by the ongoing conflict between the United States and Iran.

Chevron Philippines Inc. (Caltex), Seaoil Philippines Corp., and Shell Pilipinas Corp. announced price hikes effective Tuesday, March 3, with gasoline up by P1.90 per liter, diesel by P1.20, and kerosene by P1.50.

Cleanfuel and Petro Gazz will implement the same increases, except for kerosene, which they do not carry.

The adjustments will take effect at 6 a.m. for all firms except Cleanfuel, which will raise prices at 4:01 p.m. on the same day.

The Department of Energy–Oil Industry Management Bureau earlier projected gasoline price hikes of more than P1 per liter this week, citing the ongoing conflict.

Last week, oil firms increased gasoline prices by P0.60 per liter and diesel and kerosene by P1.20 each.

As of February 24, 2026, year-to-date adjustments stood at a net increase of P4.80 per liter for gasoline, P8.20 for diesel, and P6.20 for kerosene.—MCG, GMA Integrated News