Jamaine Punzalan

Drivers fill up their motorcycles with gasoline in Manila, June 5, 2017. Jonathan Cellona, ABS-CBN News/File

Article (news)

Katrina Domingo

ABS-CBN News

<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/177613125220920170605-transportation-motorcycles-fuel--2-JC.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/>Drivers fill up their motorcycles with gasoline in Manila, June 5, 2017. Jonathan Cellona, ABS-CBN News/File  </div>MANILA — The Development Budget Coordination Committee (DBCC) did not recommend suspending the excise tax on diesel and gasoline because this would mostly benefit the rich, the Department of Finance (DOF) said on Tuesday.This was after President Ferdinand Marcos Jr. suspended excise taxes on liquefied petroleum gas (LPG) and kerosene.Around 85 percent of the diesel and gasoline supply in the Philippines is consumed by the top 30 percent of the population, Finance Undersecretary Karlo Fermin Adriano said in a Palace press conference.Meantime, half of the Philippines’ total kerosene consumption is used by the bottom 30 percent of the population, while 56 percent of LPG consumption goes to the bottom 70 percent of the population, he said.“Kaya po ang direksyon po natin ngayon for now is targeted unahin po natin iyong most vulnerable, but that doesn’t mean that we will not provide for the others, particularly the middle income classes,” Adriano said.“Pero pinag-uusapan po iyan sa UPLIFT at pinag-uusapan po iyong ating mga rekomendasyon at mga options paano po matulungan ang lahat not just the vulnerable, the most poorest of the poor but also the middle income,” he said, adding that the DBCC will review its recommendations every month.“For the other programs, hindi po namin ipepre-empt ang mga anunsiyo na manggagaling po sa ating Presidente, pero ang masasabi ko lang po, ito po ay pinag-uusapan sa UPLIFT.”In an earlier statement, Finance Secretary Frederick Go said that “any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics.&quot; With the earlier suspension of excise tax on LPG and kerosene, the government is looking to lose some P4.1 billion in 3 months, according to data from the DOF said.If diesel and gasoline are also temporarily exempted from this tax, government losses will shoot up to P43.6 billion in 3 months, data showed.The government is also not keen on reducing or suspending the value-added tax (VAT) on oil, Adriano said, underscoring that an additional P13-billion is expected to be collected thanks to the 12 percent VAT on petroleum products that have become more expensive over the past month.“We should be mindful kung ano iyong atin pong revenues kasi importante po ang revenues para po makapagbigay ng subsidies po ang gobyerno,” Adriano said. The DOF official also underscored that the executive would need another law from Congress to authorize the adjustment of the VAT.The Philippines sources its crude oil from the Middle East and imports refined petroleum products mainly from Asian refineries that are also dependent on crude oil shipped through the <a href="https://www.abs-cbn.com/news/world/2026/4/14/trump-vows-us-will-sink-any-iran-boats-that-challenge-blockade-0803">Strait of Hormuz </a>that Iran has effectively closed.Local diesel pump prices have <a href="https://www.abs-cbn.com/news/business/2026/4/7/fuel-prices-double-since-end-of-february-1700">more than doubled </a>since the start of the war.The government revealed last week war-driven inflation figures that showed food prices had increased nearly twice as fast in March as the month before. <div>— With a report from Agence France-Presse </div><div><iframe width="640" height="360" src="https://www.youtube.com/embed/ZXEmsg004ZI?&amp;pp=0gcJCdoKAYcqIYzv&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>

The Development Budget Coordination Committee (DBCC) explained Tuesday why diesel and gasoline, the main fuels for public transport, were not exempted from excise taxes.

The Development Budget Coordination Committee (DBCC) explained Tuesday why diesel and gasoline, the main fuels for public transport, were not exempted from excise taxes.

Why were diesel, gasoline excluded from excise tax cuts?

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Why were diesel, gasoline excluded from excise tax cuts?

Katrina Domingo,

ABS-CBN News

Published April 14, 2026 09:50 AM PHT

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Updated April 14, 2026 04:52 PM PHT

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