Marcos signs law allowing excise tax freeze, but won't use powers yet

March 25, 2026 | 5:11pm

MANILA, Philippines (Updated 7:26 p.m.) — President Ferdinand Marcos Jr. signed into law a measure granting him authority to suspend or reduce excise taxes on petrol products, as the government seeks to manage the impact of rising oil prices.

Republic Act 12316 grants Marcos the emergency powers until Dec. 31, 2028. Once exercised, suspension or reduction of such taxes can be implemented for up to three months. 

Upon using the emergency powers, the president is tasked to issue a report to Congress on the factual basis of the decision as well as projected revenues from fuel purchases that will be foregone, and expected impact on inflation and gas prices. 

Speaking at a media briefing earlier Wednesday, March 25, Marcos said the bill, which he earlier certified as urgent, has been transmitted to Malacañang for approval within the day.

The government, however, has yet to decide when to exercise the powers to suspend fuel excise taxes. Erratic fuel prices have made it difficult to determine the best timing, Marcos said. 

Supply outlook

The president said the country has about 45 days of fuel supply.

"Although we cannot be assured right now of the supply, we can be sure that at least for 45 days we will be all right. I think that we can be fairly confident," Marcos said.

He added that the government is working to secure additional fuel sources from Japan, China, South Korea, India and Russia.

"We will already have a flow of oil, not just one delivery, not just two deliveries but a flow of petroleum and petroleum-related products," he said.

Emergency powers

While he assured the public of a steady oil supply, Marcos has declared a state of national energy emergency, granting the Department of Energy authority to take additional measures to address supply risks.

He said the declaration is intended to expand the government's options in responding to the crisis.

"I want to assure everyone that this should not mean that we should panic, it means that we are doing everything that we can to assess and alleviate the situation. It is a precautionary measure," he said.

Fuel prices have surged in the past three weeks due to the US-Israel war on Iran. After Tel Aviv and Washington bombed Iran, Tehran retaliated , going as far as closing the Strait or Hormuz—a vital route where 20% of global fuel supplies pass.