The House Committee on Ways and Means has taken a significant step toward providing economic relief by approving a consolidated proposed measure on Tuesday, March 10, 2026. This legislation would empower the President of the Philippines to suspend or reduce excise taxes on petroleum products, directly addressing concerns over escalating global oil prices driven by geopolitical tensions in the Middle East.
Key Provisions of the Proposed Legislation
The still unnumbered substitute bill grants presidential authority to cut or suspend fuel excise taxes for a maximum period of six months under specific conditions. This authority is triggered when Dubai crude oil prices exceed $80 per barrel for at least one consecutive month. However, this special provision will only remain available until December 31, 2028, according to the proposal's current framework.
As of March 9, 2026, the price of Dubai crude had already surged past $100 per barrel, creating widespread apprehension about increased fuel costs across the Philippines and other oil-importing nations. Currently, excise tax rates stand at P6 per liter for diesel and P10 per liter for gasoline, making any potential suspension or reduction particularly impactful for consumers and businesses alike.
Legislative Origins and Sponsors
The consolidated proposed measure incorporates House Bill 8292, which was authored by Speaker Faustino "Bojie" Dy III and Majority Leader Ferdinand Alexander Marcos. This legislation seeks to amend Section 148 of the National Internal Revenue Code by introducing a new provision that would allow sitting presidents to suspend excise tax collection during declared emergencies.
Under the proposal crafted by Dy and Marcos, suspension authority could be applied to specific petroleum products either as a complete suspension or partial reduction of applicable excise tax rates. These adjustments would be warranted by prevailing economic conditions and could last up to six months, unless Congress chooses to extend or terminate the measure earlier.
Rationale and Economic Context
"This measure grants the President of the Philippines the authority to suspend the imposition of, or reduce the excise taxes on petroleum products when public interest so requires," Marcos explained in the bill's explanatory note. He further emphasized that "this measure comes amid renewed volatility in global oil markets due to geopolitical tensions in the Middle East, which threaten to disrupt supply and push fuel prices higher."
Officials from the energy sector have expressed strong support for the proposal. According to analyses from the Department of Energy, a two-month suspension of the fuel excise tax could substantially reduce diesel prices, providing meaningful relief to motorists, transport operators, and various business sectors that rely heavily on fuel for their operations.
Commitment to Consumer Protection
In a public statement, Speaker Dy vowed to prioritize the passage of bills that can shield consumers from the ripple effects of rising fuel prices, which inevitably drive up transportation costs and commodity prices throughout the economy. "We recognize that this is a challenge we must face head on, which is why the House of Representatives will work with the Executive to focus on measures that will help cushion the effects of rising oil prices on the various sectors of our economy -- especially our workers, commuters, farmers, and small businesses," Dy declared.
He added in Filipino: "Hindi po kayo nag-iisa sa pagharap sa mga hamong ito. Kami po ay walang humpay na magsusulong ng mga priority bills at mga hakbang na makakatulong upang mapagaan ang epekto ng mga pandaigdigang krisis," which translates to "You are not alone in facing these challenges. We will continue to tirelessly push for priority bills and measures that will help ease the impact of global crises."
The proposed legislation represents a proactive approach to economic management during periods of international instability, providing the executive branch with flexible tools to respond quickly to fuel price shocks that could otherwise undermine economic stability and burden Filipino households and businesses.
