MANILA (March 10) — As fuel prices surge amid tensions in the Middle East, the administration of Ferdinand R. Marcos Jr. is pushing a proposal that would allow the President to temporarily cut fuel excise taxes—an intervention officials say could cushion the impact on motorists but which may also dent government revenues.
Malacañang confirmed Monday that the President is ready to certify the measure as urgent, allowing Congress to fast-track its approval.
Palace Press Officer Claire Castro said the proposal is being treated as a timely response to mounting public concern over rising pump prices.
“‘Yan po ‘yung nakikita ng Pangulo. At lalo po at napapanahon ito sa ngayon,” Castro said when asked if Marcos plans to issue a certification of urgency.
Temporary tax relief under discussion
The proposed bill would grant the President authority to temporarily reduce excise taxes on petroleum products, a move intended to soften the impact of higher oil prices on transport operators, businesses, and households.
Government agencies are now working to accelerate the legislative process.
Castro said the Department of Finance, the Office of the Executive Secretary, and the Office of the President of the Philippines are coordinating to support the measure and help move it through Congress.
Once lawmakers issue a committee report, the President may issue a certification of urgency, enabling legislators to pass the bill without waiting for the usual three-day interval between readings.
Revenue trade-offs loom
Cutting fuel excise taxes, however, could significantly reduce government revenues collected under the Tax Reform for Acceleration and Inclusion Law, which raised petroleum taxes starting in 2018 to fund infrastructure and social programs.
Economists have long warned that suspending or reducing these taxes—even temporarily—can weaken the government’s fiscal position unless offset by other revenue measures.
The Palace stressed that any tax reduction would only be temporary, framed as a contingency response to the global oil shock triggered by escalating geopolitical tensions.
Pressure mounts as fuel costs rise
The proposal comes as fuel companies roll out steep price increases this week, pushing diesel prices in many areas close to or beyond the P80-per-liter mark.
For transport groups and consumer advocates, the looming spike threatens to ripple across the economy—raising transport fares, food prices, and logistics costs.
While the planned tax cut could ease pressure on consumers in the short term, analysts note that structural issues in the country’s fuel pricing system and dependence on imported oil mean price volatility will likely remain a recurring challenge for policymakers.
