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Motorists line up at a gasoline station along Norzagaray Road in San Jose del Monte, Bulacan on Sunday, March 8, 2026, as some stations display "out of stock" signs for diesel.
The STAR / Ryan Baldemor
MANILA, Philippines — The House Committee on Ways and Means approved a substitute bill granting President Bongbong Marcos the power to suspend or reduce excise taxes on petroleum products as fuel prices surge by double digits amid the escalating conflict in the Middle East.
The committee consolidated 15 similar bills during its hearing on Tuesday, March 10, after consulting with resource persons from concerned government agencies and oil companies on the timeline, mechanism and process if Marcos suspends fuel excise taxes.
Rep. Miro Quimbo (Marikina, 2nd District), who chairs the ways and means committee, said the unnumbered substitute bill is necessary to immediately respond to the negative implications of the rising cost of fuel as global oil markets remain volatile.
The proposed measure seeks to amend Section 148 of the National Internal Revenue Code to grant the president the authority to suspend or reduce excise taxes on fuel under certain conditions.
These include when the average Dubai crude oil price reaches or exceeds $80 per barrel for at least one month, as reported by the Mean of Platts Singapore (MOPS) — a benchmark used to determine pump price movements.
It can also impose such a suspension or reduction if a state of national emergency or calamity has been declared that results in increases in pump prices.
If imposed by Marcos, the suspension may apply either to specific petroleum products or as a blanket suspension. The president may also implement a partial reduction in excise taxes.
The suspension or reduction may last for up to six months, unless Congress recommends and approves an extension through a joint resolution. In any case, the measure limits the total duration to a maximum of one calendar year.
Once the period expires, excise tax rates will automatically be reinstated without the need for further legislative or executive action. The bill, however, sets the authority only until Dec. 31, 2028.
Marcos may only implement the suspension or reduction of excise taxes on fuel based on the Development Budget Coordination Committee and the Department of Energy's recommendations.
Oil firms are rolling out fuel price hikes on a staggered basis this week, with some implementing the increases in two tranches and others spreading them over as many as seven.
The adjustments also differ by company, with Shell's diesel prices set to rise by up to P24.25 per liter by week’s end, compared with Petron’s increase of up to P19.20 per liter.
The local fuel price hikes came after 10 consecutive weeks of increases in diesel and kerosene prices due to the conflict between the United States and Iran.
The situation worsened when Washington turned its threats into a reality by coordinating with Israel to launch airstrikes on Tehran, later triggering Iran to retaliate against neighboring countries and shut the Strait of Hormuz — a vital oil shipping route.
Malacañang said Monday that Marcos plans to certify the measure as urgent, allowing Congress to skip the requirement of holding bill readings on separate days and enabling approval on second and third reading within the same day.
If Congress passes the bill, the excise tax of P10 per liter for unleaded gasoline and P6 per liter for diesel could be removed from fuel prices at gas stations if a suspension is implemented.
