The public can expect relief from rising fuel prices by around P6 to P10 per liter within the next two weeks with Congress poised to pass a measure allowing the President to suspend or slash excise tax of petroleum products, House Committee on Public Accounts chairman Terry Ridon said.
Ridon said the House of Representatives is almost done with the bill, which is expected to be passed by the Senate by the end of next week.
“Approval is just a matter of time…As big as P10 per liter can be shaved off the price of petroleum products after the excise taxes have been suspended. So, this is a big thing and hopefully within the next two weeks our countrymen will be able to benefit from this intervention,” he said.
“Giving power to our President to reduce, suspend, remove excise taxes on petroleum products is unprecedented. It has not been done even in the past because last time there was still a three-month grace period to remove, suspend excise taxes on petroleum products,” Ridon added.
The lawmaker was referring to the provision of the existing law allowing presidential intervention only if the three-month average of crude prices exceeds $80 per barrel.
This waiting period was removed in the pending bill, Ridon said.
President Ferdinand Marcos Jr. earlier certified as urgent House Bill 8418, or the proposed “Act Authorizing the President of the Philippines to Suspend or Reduce the Excise Taxes on Petroleum Products During National or Global Economic Emergencies.”
Under the bill, the President may exercise the authority only upon recommendation of the Development Budget Coordination Committee and in coordination with the Secretary of Energy, and only if one of two conditions is present.
The first trigger is when the Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately before the order to suspend or reduce is issued.
The second trigger is when there is a declared state of national emergency or calamity and it results in extraordinary increases in domestic pump prices, as certified by the Secretary of Energy, establishing a formal basis for action beyond ordinary market movements.
As this developed, the Department of Trade and Industry issued a stern warning to retailers against hoarding essential goods and profiteering amid global uncertainties fueled by the ongoing Middle East crisis.
DTI Secretary Cristina Roque said the agency will not tolerate illegal trade practices that exploit consumers.
Under the Price Act (Republic Act No. 7581) and other relevant statutes, the government is prepared to strictly enforce penalties against violators, she said.
Roque said illegal price manipulation carries heavy sanctions to deter market exploitation, including imprisonment up to 15 years for those found guilty and fines reaching as high as P2 million.
“The law provides us with the tools to ensure that essential goods remain accessible and fairly priced for every Filipino family,” she said.
Roque said the government has also begun a series of consultations and inter-agency actions aimed at keeping prices of basic necessities and prime commodities.
Another round of discussions with manufacturers and industry groups is scheduled on Monday to determine whether firms are facing cost pressures that could prompt price adjustments, she said.
“For now, they have not requested any price increase for basic necessities and prime commodities. But we can’t say for sure until we meet with them,” Roque said. “If ever there’s an increase, we need to see how much so we can keep the prices of basic necessities as stable as possible, or limit any increase.”
The government is also coordinating closely with supply chain partners to maintain the flow of goods and mitigate disruptions linked to fuel costs and logistics operations.
