The House of Representatives approved on third and final reading a measure allowing President Ferdinand Marcos Jr. to suspend or reduce excise taxes on fuel, as global oil prices continue to rise due to tensions in the Middle East.
With 248 affirmative votes, three negative votes, and no abstentions, lawmakers passed House Bill No. 8418, granting the President emergency powers to adjust fuel excise taxes for up to six months, provided that the average price of Dubai crude exceeds $80 per barrel for at least one month prior to the action.
The proposed authority will remain in effect until December 31, 2028.
As of March 9, the price of Dubai crude oil has already breached $100 per barrel, while local fuel prices have surged by P17 to P24 per liter in the past week. The spike has prompted transport group PISTON to announce a nationwide transport strike on March 19.
The escalation in oil prices follows renewed conflict in the Middle East, which began after reported airstrikes by the United States and Israel targeting Iran on February 27. The incident triggered retaliatory attacks, further destabilizing the region—where the Philippines sources about 98% of its crude oil supply.
Administration lawmakers said the measure aims to cushion the impact of rising fuel costs on consumers.
“This measure is in direct response to the ongoing crisis in the Middle East that has a direct effect on fuel prices and the cost of basic goods in the Philippines,” said House Majority Leader Sandro Marcos.
He noted that suspending excise taxes could reduce pump prices by as much as P10 per liter for gasoline and P6 per liter for diesel.
Leyte Representative Martin Romualdez added that while the relief may be limited, it would complement other government assistance programs.
Under current law, excise taxes are embedded in fuel prices, contributing to higher transportation costs, delivery expenses, and overall cost of living.
The bill also provides that any suspension or reduction ordered by the President will not exceed six months per issuance, unless extended or lifted earlier by Congress through a joint resolution.
However, members of the Makabayan bloc opposed the measure, arguing that granting emergency powers is only a temporary fix and calling instead for the permanent removal of fuel taxes.
ACT Teachers Rep. Antonio Tinio, Gabriela Rep. Sarah Elago, and Kabataan Rep. Renee Co criticized the proposal as a “stopgap” and a potential “power grab,” urging Congress to pursue long-term solutions to address rising fuel costs.
