Exporters, port users welcome fuel excise tax law

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March 27, 2026 | 12:00am

MANILA, Philippines — Exporters and port users yesterday expressed support for a law granting President Marcos the authority to suspend or reduce excise taxes on petroleum products, saying the measure would help cushion the impact of rising oil prices.

In a statement, Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. said the new law is a timely and much-needed policy tool given the fuel price hikes.

“For exporters, especially MSMEs (micro, small and medium enterprises), transport and logistics costs are a major component of overall expenses. Any relief on fuel costs will help preserve competitiveness in an already volatile global markets,” Ortiz-Luis said.

Republic Act 12316, authorizes the suspension or reduction of excise taxes on petroleum products.

This power can be triggered upon the recommendation of the Development Budget Coordination Committee with the Energy Secretary, if Dubai crude oil price reaches or exceeds $80 per barrel for one month.

Ortiz-Luis said the Middle East conflict, which has driven oil price increases, has also affected freight, trucking, power and production costs.

He said some of Philexport’s members are looking to reduce work hours due to the higher input costs.

“The ability of the President to suspend or reduce excise taxes on fuel can help cut operating costs, prevent further price pass-through and ultimately protect jobs and livelihoods,” he said.

While the signing of the law is seen as a positive development, he said a timely and transparent implementation would be critical to maximize the benefits of the law.

“We hope that clear guidelines will soon be issued. Predictability is important so businesses can plan accordingly and pass on the benefits efficiently to consumers,” he said.

The United Portusers Confederation of the Philippines Inc. (UPC) also expressed its support for the government’s declaration of a state of energy emergency and the law authorizing the suspension or reduction of fuel excise taxes, noting both measures will help stabilize logistics costs and protect the country’s trade competitiveness.

“Fuel is the single most critical cost driver in port operations and logistics. When oil prices spike, the impact cascades immediately — from trucking and shipping lines to warehousing and last-mile delivery,” UPC president Ma. Flordeliza Leong said.

“The declaration of an energy emergency and the flexibility to adjust oil taxes are timely lifelines that can temper cost surges and prevent further disruption across the supply chain,” she added.

Apart from the immediate release of guidelines for the implementation of the law and transparent monitoring, UPC also pushed for complementary actions. These include exploring the use of fuel-efficient and alternative-energy fleets for port operations; rationalizing port and shipping surcharges; improving traffic management and turnaround times to reduce fuel burn; and strengthening data sharing across agencies.

“Beyond immediate relief, this is an opportunity to accelerate structural reforms that will make our logistics system more energy-resilient and cost-efficient,” Leong said.

For business group American Chamber of Commerce of the Philippines (AmCham), the declaration of a national energy emergency is a proactive step in addressing the country’s energy challenges.

It said a reliable and affordable energy is essential for businesses’ operational stability, investment planning and overall competitiveness.

AmCham said the current situation presents an opportunity to advance priority reforms being pushed under Arangkada Philippines, including amendments to the Electric Power Industry Reform Act, strengthening the energy regulatory framework, accelerating renewable energy development, improving grid infrastructure and encouraging greater private sector participation.

“Moving these measures forward collaboratively can reinforce investor confidence and demonstrate the Philippines’ commitment to a stable, forward-looking energy sector,” AmCham said.