Marcos certifies as urgent bill allowing him to cut excise tax on fuel

President Ferdinand "Bongbong" Marcos has certified as urgent the bill granting him emergency powers to suspend or cut excise tax on fuel amid the ongoing conflict in the Middle East. 

House Bill No. 8418 allows the President to suspend or reduce excise tax on fuel products for six months at the maximum, provided that the average Dubai crude oil price exceeds US$80 per barrel for one month immediately preceding the suspension or reduction of the excise tax. 

The bill also provides that the President will only have such additional authority until December 31, 2028. 

A bill certified as urgent allows the House and Senate to approve the bill on second and third reading on the same day.

The House already approved House Bill 8418 on second reading on Wednesday, March 11, via voice vote.

The Senate counterpart of the measure was approved by the joint Senate committees on energy as well as ways and means on Thursday, March 12.

 The House version provides that the suspension or reduction will be automatically lifted when the conditions warranting it no longer exist. 

“This bill gives the President a measured tool to cushion that shock, with clear triggers, clear limits and clear reporting when the prices of fuel and basic commodities get too high. Proteksyon ito sa mga mamamayan sa biglaang pagsirit ng presyo ng mga pangunahing bilihin,” House Majority Leader and Ilocos Norte Rep. Sandro Marcos said after the House approved the measure on second reading on Wednesday. 

(This is for the protection of the public against a sudden increase in prices of basic commodities.)

House ways and means panel chairperson Miro Quimbo of Marikina earlier said that the President’s authority is not limitless because it will be anchored on a policy drafted by Congress.

This is because under the House version, the President may exercise the authority only upon recommendation of the Development Budget Coordination Committee and in coordination with the Secretary of Energy, and only if one of the following conditions is present:

• when the Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately before the order to suspend or reduce is issued or,
• when there is a declared state of national emergency or calamity and it results in extraordinary increases in domestic pump prices, as certified by the Secretary of Energy, establishing a formal basis for action beyond ordinary market movements.

The House version also mandates the issuance of implementing rules within 15 days from effectivity by the Department of Finance, the Department of Budget and Management, the Department of Economy, Planning, and Development, the Department of Energy and the Bangko Sentral ng Pilipinas, in coordination with the Bureau of Internal Revenue and the Bureau of Customs, to ensure consistent enforcement and clear administrative procedures.

The Middle East conflict started when a joint US-Israel Operation Epic Fury launched airstrikes targeting Iran’s seat of government last February 27 to supposedly deter Iran’s missile program which threatens the region’s security.

This operation has since killed Iranian leaders and prompted Iran to retaliate by launching airstrikes targeting US bases, among others, located in Middle Eastern countries where the Philippines sources 98% of its crude oil supply. 

As a result, oil prices have increased by at least P10 per liter this week, with the Energy department expecting a P17 to P24 price hike per liter spread within March 10 to 16. 

In a separate statement, opposition lawmakers who have long advocated for scrapping the fuel excise tax said that the ongoing war between the joint forces of US-Israel and Iran makes the scrapping of the Oil Deregulation Law a necessity.

"We press for immediate, concrete, and pro-people measures: remove excise taxes on oil; remove VAT (Value Added Tax) on petroleum products; scrap the Oil Deregulation Law; hold corrupt officials and profiteers accountable; raise wages to match the spiraling cost of living; and stop the US-Israel bombing and war that fuels instability, price shocks, and human catastrophe,"  the Makabayan lawmakers said.

The Makabayan bloc is composed of  ACT Teachers Rep. Antonio Tinio, Gabriela Women’s Party Rep. Sarah Jane Elago and Kabataan Rep. Renee Louise Co . 

"We, the Makabayan bloc, condemn the oil cartel’s shameless exploitation of the crisis in Iran and West Asia to manipulate pump prices and squeeze superprofits from a people already drowning in hunger wages and soaring costs of living," the statement said.  

"This price shock, the biggest since the Oil Deregulation Law took effect in 1998, exposes the brutal reality that deregulation did not create competition; it consolidated corporate power, enabled coordinated price increases, and left the public defenseless," the statement added.—With Llanesca Panti/AOL, GMA Integrated News