In a significant move to address potential fuel price hikes, Senator Chiz Escudero has called for amendments to the Tax Reform for Acceleration and Inclusion (Train) Law. On March 4, 2026, he proposed empowering the President to suspend or lower excise and value-added taxes (VAT) on fuel whenever global oil prices surpass the benchmark assumptions for Dubai crude, as outlined in the government's Budget of Expenditures and Sources of Financing (BESF).
Current Law Deemed Too Restrictive
Escudero criticized the existing safeguard in the Train Law, or Republic Act No. 10963, as "too narrow." He explained that it requires specific conditions before excise taxes can be suspended, which delays relief for consumers during oil shocks caused by force majeure events like wars or global crises. The senator emphasized that a broader amendment is essential to ensure quicker protection for the public from sudden fuel price increases.
Proposal for Automatic Presidential Authority
According to Escudero, his position has always been to grant the President automatic authority to suspend tax impositions. "The law should be amended to automatically give the President that power to suspend or lower excise and VAT rates when prices exceed the estimated range of Dubai crude oil based on the BESF, which guides government budget assumptions," he stated. He added that the government should not benefit from windfall excise taxes at the expense of the public during price hikes triggered by unforeseen events.
Alignment with Presidential Emergency Powers Request
This proposal comes as President Ferdinand Marcos Jr. announced plans to ask Congress for emergency powers to reduce excise taxes on petroleum products if Dubai crude exceeds $80 per barrel. The President aims to shield Filipinos from the impact of rising global oil prices. Escudero acknowledged that the request is a step in the right direction but argued that a permanent amendment would be more effective. "We should not wait for every crisis to pass through Congress before action can be taken. The law must already provide the President with the automatic authority to act when conditions demand it," he pointed out.
Broader Implications for Consumer Protection
The senator's call highlights ongoing efforts to enhance economic resilience against volatile oil markets. By amending the Train Law, the government could implement faster tax adjustments, potentially stabilizing fuel costs and mitigating inflationary pressures. This move underscores the need for proactive legislative measures to safeguard public welfare during global economic uncertainties.
