Marilyn Cahatol

Motorists line up at a gasoline station along Philcoa in Diliman, Quezon City on Friday, March 6, in a rush to refuel ahead of the expected fuel price increase next week. Long queues of cars and motorcycles formed as drivers tried to fill up before the anticipated hike in gasoline and diesel prices.  Maria Tan, ABS-CBN News

Article (news)

OIL PRICE HIKE

Katrina Domingo

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/177434144691320260306-oil-price-hike-refueling-MT8.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Motorists line up at a gasoline station along Philcoa in Diliman, Quezon City on Friday, March 6, in a rush to refuel ahead of the expected fuel price increase next week. Long queues of cars and motorcycles formed as drivers tried to fill up before the anticipated hike in gasoline and diesel prices. <em>Maria Tan, ABS-CBN News </em></span></span></span></div><p>MANILA (UPDATED) — President Ferdinand Marcos Jr. on Wednesday signed a measure that would allow the Chief Executive to either reduce or suspend oil excise taxes in the Philippines, as the country continued to grapple with double-digit hikes in pump prices.</p><p>Under Republic Act No. 12316, the President may adjust taxes on petroleum products &quot;upon the recommendation of the Development Budget Coordination Committee (DBCC),&quot; provided that &quot;the average Dubai crude oil price… reaches or exceeds $80 per barrel for one month.&quot;</p><p>The law limits any suspension or reduction to &quot;a period not exceeding 3 months.&quot;</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2026/3/25/philippines-eyeing-russian-oil-marcos-1336">READ: Philippines eyeing Russian oil– Marcos</a></div><p>&quot;The excise tax on fuel products shall revert automatically to the rates provided under this section, without need for further legislative or executive action&quot; one week after the one month average of Dubai crude oil prices fall below $80 per barrel or after 3 months, whichever comes first.</p><p>This power, however, will only take effect 15 days after its publication in a newspaper, and may only be exercised until December 31, 2028.</p><p>The executive department is also mandated to report to Congress about the following:</p><p>- factual basis and policy goals for the suspension or reduction of excise taxes</p><p>- Estimated foregone revenues, including social benefits</p><p>- Expected impact on inflation and fuel prices</p><p>- Cost-benefit analysis</p><p>- Assessment of possible market distortions, leakages and unintended consequences</p><p>&quot;The report shall include a recommendation on whether the suspension or reduction of excise taxes should be maintained, modified or lifted, and shall form part of the basis for any continued suspension or reduction,&quot; the law read.</p><p>&quot;During the suspension or reduction of excise tax… oil companies shall submit to the Department of Energy monthly information on the cost components of the price of petroleum products sold,&quot; it read.</p><p>&quot;The Bureau of Internal Revenue and the Bureau of Customs shall likewise submit to Congress monthly information on the declared value and volume of petroleum products… suspended or reduced.&quot;</p><p>In an earlier statement, Marcos Jr. said that his administration will study and determine the best time to implement this new power.</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2026/3/25/as-fuel-costs-skyrocket-filipinos-now-prefer-to-travel-to-nearer-locations-study-1819">READ: As fuel costs skyrocket, Filipinos now prefer to travel to nearer locations — study</a></div><p>&quot;Ngayon, titingnan ngayon natin kailan ang pinakamagandang oras, when is the best time to use that new authority because there are conditions within the law that have to be satisfied. But nonetheless, we are trying to determine,&quot; he said. </p><p>&quot;Ang mahirap talaga dito pabago-bago ang presyo,&quot; he added.</p><p>The move comes nearly a month after Iran blockaded portions of the Strait of Hormuz — where 20 percent of the world’s oil supply passes through — in retaliation against air strikes from US and Israeli forces.</p><p>While Marcos Jr. certified the measure as urgent earlier this month, the President noted that its passage took some time due to &quot;very complicated calculations.&quot;</p><p>Analysts earlier estimated that the Philippines may lose at least P100 billion in government revenue should the President suspend taxes on oil imports.</p><p>Aside from the reduction of the oil excise tax, the Marcos Jr. administration has also provided cash aid and fuel subsidies to transport sector workers, and slashed by half the price of two train lines in the capital region.</p><p>But transport groups described these efforts as &quot;band aid solutions&quot; and are instead calling for the removal of the value-added tax on oil to further temper the steep spikes in fuel prices.</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/nation/2026/3/25/various-groups-to-join-2-day-nationwide-transport-strike-over-fuel-price-surge-1710">READ: Various groups to join 2-day nationwide transport strike over fuel price surge</a></div><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/g7Rntrr92CE?si=dH1hBWuTIWCilUIc" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe></div>

<p>President Ferdinand Marcos Jr. on Wednesday signed a measure that would allow the Chief Executive to either reduce or suspend oil excise taxes in the Philippines, as the country continued to grapple with double-digit hikes in pump prices. </p>

President Ferdinand Marcos Jr. on Wednesday signed a measure that would allow the Chief Executive to either reduce or suspend oil excise taxes in the Philippines, as the country continued to grapple with double-digit hikes in pump prices.

Marcos signs law to cut oil excise tax to ease double-digit spikes in PH fuel prices

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Marcos signs law to cut oil excise tax to ease double-digit spikes in PH fuel prices

Katrina Domingo,

ABS-CBN News

Published March 25, 2026 07:01 PM PHT

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Updated April 08, 2026 10:21 AM PHT

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Ferdinand Marcos Jr.

oil excise tax

fuel price

oil crisis

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