Despite certifying the measure as urgent, President Ferdinand Marcos Jr. said that the exercise of emergency powers to temporarily suspend or reduce the oil excise tax has yet to be determined.
Marcos explained that the decision will depend on the trends of global oil prices.
“That depends… Marami, that’s a very complicated calculation… We will see. Depends on the trends. We have to watch the trends on oil prices. We just have to look. It’s very hard to say because it’s all speculation. We don’t know how long this will last for,” Marcos told reporters.
He added, “We don’t know what the effects are. We don’t know what will happen in the Strait of Hormuz. So, right now, we are just adjusting to the situation. And when the situation calls for it, then we will see when to exercise that power and by how much.”
The remarks come amid warnings from Iran’s military command that oil prices could surge to as high as USD 200 per barrel following effective disruptions in the Strait of Hormuz, through which about 20% of the world’s oil and liquefied natural gas pass.
Locally, fuel prices continue to climb, reaching as high as ₱100 per liter in some areas, as oil companies implement staggered price adjustments.
The Senate unanimously approved on third and final reading the measure granting emergency powers to Marcos, allowing the President to act if the average Dubai crude oil price exceeds USD 80 per barrel for one month immediately preceding any suspension or reduction of the excise tax. The House of Representatives approved its counterpart measure.
Despite recent steep fuel price increases, Marcos previously reassured the public that “everything is normal” and urged citizens not to hoard fuel.
