Jeepney driver Luisito Estrobilla, who operates along the Litex-Commonwealth-Elliptical Road route in Quezon City, benefited from a PHP10 per liter fuel discount on April 15, 2026. This initiative is part of a broader government program that has allocated an initial budget of PHP1.5 billion for fuel subsidies. The program is designed to cover up to 150 liters per week per vehicle until July, supporting approximately 142,000 jeepney and UV express units across the nation through a partnership with 14,000 gas stations.
Senator Gatchalian Raises Concerns Over Tax Suspension
In a statement on Monday, Senator Sherwin Gatchalian, who chairs the Senate Committee on Finance, emphasized that the government must carefully evaluate the fiscal implications of suspending fuel excise taxes. He warned that such a move could significantly reduce revenues essential for funding public programs, potentially leading to a loss of around PHP16 billion to PHP18 billion.
"There will be a big loss, around PHP16 to PHP18 billion. We understand that. And if we lose collections, we will also have no source for the assistance we provide," Gatchalian stated. He described the suspension of excise taxes on petroleum products as a "last resort," highlighting the need to balance consumer relief with the sustainability of public spending.
Advocating for Targeted Subsidies
Gatchalian expressed his support for targeted fuel subsidies, arguing that they offer a more direct and efficient way to assist sectors most affected by high oil prices, such as public utility drivers and farmers. "I favor the targeted approach because it goes directly to those who truly need it," he explained. This approach aligns with the current subsidy program, which aims to provide immediate relief to transport operators without the broader fiscal risks associated with tax suspensions.
The senator noted that global oil prices have recently begun to ease, allowing the government to adopt a calibrated response while closely monitoring market trends. He suggested that alternative measures, including fuel discount programs and service contracting, could deliver quicker relief to transport operators, thereby avoiding the immediate need for a full tax suspension.
Tax Suspension Remains Under Consideration
Despite advocating for targeted subsidies, Gatchalian acknowledged that suspending excise taxes on diesel is still under consideration, particularly due to its widespread use in public transport and goods delivery. This potential measure reflects ongoing efforts to address the economic challenges faced by key sectors, even as the government explores less fiscally impactful options.
The debate over fuel tax policies comes at a critical time, with the new subsidy program rolling out to support thousands of drivers nationwide. As the government navigates these complex issues, the balance between immediate consumer assistance and long-term fiscal health remains a central focus for policymakers.
