3 weeks ago
12
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Station attendants check their stocks at a gasoline station in Cubao, Quezon City on March 10, 2026 as fuel companies implement a staggered price hike to ease the burden on motorists.
The Philippine STAR / Miguel de Guzman
MANILA, Philippines — House lawmakers said the oil deregulation law, which stripped government control over fuel prices, is among the factors making it difficult for authorities to address the double-digit increase in fuel costs amid the Middle East conflict.
Rep. Miro Quimbo (Marikina, 2nd District), who chairs the Committee on Ways and Means, said at a hearing on Tuesday, March 10, that the Philippines' heavily deregulated oil industry allows companies to adjust petroleum product prices according to their discretion but still based on the Mean of Platts Singapore (MOPS).
He explained this after lawmakers questioned the Department of Energy, the Bureau of Customs, and representatives of major oil companies, who said that if excise taxes on fuel were suspended or reduced, it could take one to two weeks before the change is reflected at the pump.
However, when oil prices increase in the global market, local fuel price hikes can be implemented immediately.
"Walang nagreregulate sa kanilang income because it's a free market (No one is regulating their income because it's a free market)," Quimbo said.
Tanya Samillano, president of the Independent Philippine Petroleum Companies Association, explained to the committee that excise tax cuts or suspensions cannot be applied right away because they depend on the remaining stock of each oil firm and whether excise taxes on those supplies have already been paid.
If oil firms have already paid excise taxes on their existing inventories, the cost will still be passed on to consumers at the pump. Only when the next shipment of petroleum products arrives — purchased without excise taxes due to a suspension — will motorists benefit from lower prices without paying the excise tax.
"The moment it reached the shores of the Philippines, the taxes and duties had already been settled. When you pass it today, the inventory tomorrow still has the paid excise. Pero 'yung padating bukas 'yun 'yung wala (But what will arrive tomorrow, that will not have excise tax)," Samillano said.
"So ang mangyayari diyan (what will happen there is), even if we remove excise tax, it can only apply to commodities that have not yet been paid or arrived in the Philippines," Quimbo added.
The committee chair also explained that, beyond excise taxes, Filipinos face a heavier burden from the 12% value-added tax (VAT) imposed on petroleum products.
Quimbo said excise taxes are paid by oil firms before fuel reaches consumers, making suspensions or reductions more difficult since the taxes are expected to be refunded after consumers purchase their products. VAT, by comparison, is collected only when consumers buy the fuel.
Rep. Toby Tiangco (Navotas, Lone District) said higher fuel prices also mean higher government revenues from the 12% value-added tax (VAT). He described this as a "moral issue," saying it was the reason he filed a resolution proposing the suspension of VAT instead of excise taxes.
Meanwhile, Rep. Renee Co (Kabataan Party-list) pointed out that even if Congress passes the bill granting the president the authority to suspend excise tax on petroleum products, it is only a mere band-aid solution to the "general problem of deregulation of the oil industry."
The ways and means committee approved an unnumbered substitute bill consolidating 15 House measures that seek to grant the president emergency powers or suspend excise taxes on fuel.
Marcos plans to certify the bill as urgent to address rising fuel prices and cushion the potential domino effect on inflation, as the cost of goods and services dependent on transportation and fuel is also expected to increase.
