Tovic Salvador

Fuel nozzles hang at a gasoline station along EDSA in Quezon City on February 26, 2022. Gasoline prices which already increased for 8 straight weeks recently are expected to rise further amid the escalating conflict between Ukraine and Russia. George Calvelo, ABS-CBN News

Article (news)

Vivienne Gulla

RG Cruz

ABS-CBN News

<h2 id="isPasted" style="line-height:1">But oil firms say effect of excise tax suspension won’t be felt immediately</h2><div> </div>MANILA —  A measure seeking to authorize the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies got the nod of the House Committee on Ways and Means on Tuesday, amid big time fuel price hikes following the conflict in Iran.Under the unnumbered substitute bill, the President may do so upon the recommendation of the Development Budget Coordination Committee (DBCC), in coordination with the Energy Secretary, subject to certain conditions. These conditions include the average Dubai crude oil price reaching or exceeding $80 per barrel for one month. It may also be triggered if the President declares a national emergency or calamity that results in extraordinary increases in domestic pump prices of petroleum products, as certified by the Energy Secretary.“The suspension may be applied to specific petroleum products and may be implemented either as a full suspension or partial reduction of the applicable excise tax rates under this section, as may be warranted by prevailing conditions,” the bill stated.It added that any suspension or reduction shall be “effective for a period not exceeding six months, unless otherwise extended or terminated earlier by Congress through a joint resolution”. Congress may extend the suspension as long as the aggregate period does not exceed one year.“The President can only mandate the suspension if there is a specific recommendation, not just by one, not just by two, not just by three, but by six Cabinet members all joined together declaring that there is a need to suspend,” House Committee on Ways and Means Chairperson Miro Quimbo said.The authority granted to the President will remain in effect only until Dec. 31, 2028.The proposed measure is expected to be approved on second reading by the House of Representatives on Tuesday, according to Quimbo. He added that if the President certifies it as urgent, the bill may be approved on third and final reading on Wednesday.“Ginagawa ng Senado ngayon, mayroon silang informal briefing para mapasimulan na nila ang pag-uusap. So that by next week, sabay namin ito matake-up kung kinakailangan magkaroon ng bicam. So after plenary mamaya, mag-second (reading). Mag-third reading bukas para mapagbotohan na rin ito ng Senado sa susunod na linggo,” Quimbo said.<div>EFFECT NOT IMMEDIATE</div>If the President suspends the imposition of excise tax on fuel, it is “ideally” expected to bring down gasoline prices by P10 per liter, diesel prices by P6 per liter, kerosene prices by P5 per liter, ad LPG prices by P3 per kilogram. The said amounts are the fixed excise tax for the said petroleum products under the Tax Reform for Acceleration and Inclusion Law.Local oil firms and the Department of Energy, however, said it will not immediately be felt in local gas stations, because the excise tax suspension will apply to petroleum products that have yet to arrive in the country.At least two fuel companies said that based on their inventory, they said it could take 5 days to 20 days before the effect of a possible excise tax suspension is felt.Lawmakers slammed this as a “double standard” in the movement of fuel prices. They said that prices climbed only days after the war broke out in Iran, but moves to reduce prices could take weeks before taking effect.Quimbo said he is also pushing a review of the oil deregulation law. <div>SENATOR&#x27;S PROPOSAL</div>Senate Finance Committee Chairman Sherwin Gatchalian, meanwhile, proposed that instead of using $80 per barrel as a trigger for reducing excise taxes, legislators should look at the &quot;rate of increase.&quot; &quot;If it rises by 50 percent over two weeks, release it immediately,&quot; Gatchalian told reporters. The move aims to provide faster relief than a House proposal requiring crude to average $80 for 30 days.He estimated a temporary suspension could cost the Treasury up to P15 billion monthly in lost revenue. However, Gatchalian urged the government to first tap existing subsidies and P52 billion in calamity funds. &quot;The suspension of excise tax should be the last resort,&quot; he said, citing the efficiency of targeted aid for transport workers over complex tax cuts.Gatchalian believes the fuel excise tax reduction may be passed within the remaining 4 session days of Congress before it goes on its summer break, with no need for a special session so long as it is sponsored in the plenary session on Wednesday. It is due for committee hearings on Wednesday morning. Meanwhile, the Bureau of Customs said that suspending the excise taxes as well as the VAT on oil products could cost the government over <a href="https://www.abs-cbn.com/news/business/2026/3/10/suspension-of-fuel-excise-taxes-vat-could-cost-govt-p330-billion-customs-1454" rel="noopener noreferrer" target="_blank">P300 billion in lost revenues</a>.

A measure seeking to authorize the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies got the nod of the House tax panel.

A measure seeking to authorize the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies got the nod of the House tax panel.

House panel OKs bill authorizing President to suspend or reduce fuel excise taxes

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Sudoku

Word of the Day

Lotto

Horoscope

Business

House panel OKs bill authorizing President to suspend or reduce fuel excise taxes

Vivienne Gulla,

RG Cruz,

ABS-CBN News

Published March 10, 2026 04:02 PM PHT

|

Updated March 10, 2026 04:24 PM PHT

Read More:

excise tax

VAT on fuel

TRAIN Law

House of Representatives

Ways and Means

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.