Senator Bam Aquino Calls for Implementation of Train Law's Oil Tax Suspension Mechanism
Senator Bam Aquino has issued a timely reminder to the government regarding a critical provision within the Tax Reform for Acceleration and Inclusion (Train) Law. On Tuesday, March 3, 2026, Aquino emphasized that the legislation includes an automatic suspension mechanism for excise taxes on petroleum products once global oil prices breach the $80 per barrel threshold.
Safeguard Mechanism Designed to Protect Consumers
The senator, who championed this safeguard during the Train Law's deliberations, explained that the provision allows for the automatic suspension of excise tax collection on fuel products. This trigger activates when the average price of oil in the world market reaches or exceeds $80 per barrel over a consecutive three-month period. "In the safeguard that we pushed under the Train Law, the automatic suspension of excise tax collection on oil is allowed once the price of oil in the world market exceeds $80 per barrel," Aquino stated.
Immediate Context: Rising Fuel Prices and Global Tensions
This reminder comes at a crucial moment, as local oil companies announced significant price increases effective Tuesday, March 3. Gasoline prices are set to rise by P1.90 per liter, while diesel will increase by P1.20 per liter. These hikes place additional pressure on Filipino consumers already struggling with escalating costs of living. Aquino pointed out that the suspension of excise taxes would serve as a vital cushion against these fuel price increases, particularly given the ongoing tensions in the Middle East that are driving global oil prices upward. "This suspension will help reduce the burden of the anticipated increase in oil prices due to the conflict in the Middle East," he affirmed.
Broader Economic Implications and Legislative Efforts
Aquino warned of a potential domino effect, where higher oil prices could lead to increased costs for food and other essential goods, further straining household budgets across the Philippines. In response, he plans to file a resolution urging the government to implement the tax suspension should the $80 per barrel threshold be met. This effort builds upon his previous legislative work during the 20th Congress, where he filed Senate Bill 265. This bill aims to abolish the excise taxes imposed under the Train Law on several key fuels:
- Diesel
- Kerosene
- Liquefied petroleum gas (LPG)
- Fuel oil
- Unleaded gasoline
Aquino argued that these taxes have contributed to higher fuel prices, which cascade into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos.
Potential Benefits of Tax Relief Measures
If enacted, Aquino's proposed measures would provide immediate relief to various sectors:
- Commuters and drivers, especially those operating diesel-powered jeepneys, buses, and delivery vehicles.
- Households, by lowering expenses for cooking fuel and lighting, particularly in poor and off-grid communities.
- Producers and small businesses, through reduced fuel and logistics costs.
"It will also help stabilize the prices of basic goods and services amid persistent inflationary pressures," Aquino added, highlighting the broader economic stabilization benefits.
Comprehensive Approach to Cost-of-Living Challenges
Beyond the proposed removal of excise taxes on petroleum products, Senator Aquino is advocating for additional measures to mitigate the high cost of living. These include a bill to eliminate the 12 percent value-added tax on electricity and another proposal to institutionalize subsidies for commuters and students. Together, these initiatives form a comprehensive strategy aimed at providing sustained economic relief to Filipino families and businesses during periods of financial strain.
