Congress is pulling out all the stops to pass measures aimed at cushioning the impact of rising global oil prices on Filipino consumers, including the temporary suspension of fuel excise tax and amendments to the Biofuels Act of 2006.
The two measures, which were both certified as urgent by President Ferdinand Marcos Jr., reached the Senate plenary on Monday after an all-member caucus was held.
Earlier in the day, the House of Representatives approved on third and final reading a measure granting the President the authority to temporarily slash or suspend excise taxes on petroleum products during national or global economic emergencies to provide the government with a faster tool to address fuel price shocks.
“If the President can temporarily lift the excise tax, that is up to P10 per liter for gasoline and P6 per liter for diesel that can be taken off the price that people pay,” House Majority Leader and Ilocos Norte Rep. Sandro Marcos said.
House Bill No. 8418, certified as urgent by the President, was approved with 247 affirmative votes, three negative votes and no abstentions.
At the Upper House, Senator Pia Cayetano sponsored Senate Bill No. 1982 for the temporary suspension or reduction of excise taxes on petroleum products during periods of extraordinary increases in global oil prices.
Cayetano said the Senate is prepared to adopt the House version of the fuel tax relief measure to fast-track the process.
“When fuel prices increase, the effects ripple across the entire economy. Transportation costs rise, the movement of goods becomes more expensive, and ultimately it is Filipino families who feel the greatest burden through higher prices of food and other basic commodities,” Cayetano said.
The President on Monday also certified as urgent a proposed measure seeking to amend the country’s biofuels law.
In a letter addressed to Senate President Vicente Sotto III, Mr. Marcos backed the immediate enactment of Senate Bill No. 1965 which seeks to amend Section 5 of the Biofuels Act of 2026 to allow the President to temporarily suspend mandatory biofuel blending if blended fuel prices are at least five percent higher than pure fuel, thus easing pump prices.
Under the current law, gasoline and diesel sold in the country must contain biofuel components such as bioethanol and biodiesel. While the policy supports renewable energy and local biofuel industries, the blending requirement can sometimes raise pump prices when biofuel components become more expensive or supply becomes tight.
Copies of the certification were also furnished to House Speaker Faustino Dy III and the Presidential Legislative Liaison Office.
“The President’s certification makes clear that this is an urgent matter affecting every Filipino household and the entire economy. The House stands ready to act swiftly on this measure so we can give the government the flexibility to stabilize fuel prices,” Dy said in a statement.
Cayetano, who also sponsored SB No. 1965, said the amendment seeks to balance consumer protection and long-term energy security.
“We must create policies that not only provide relief in the present, but also lay the groundwork for a more stable, diversified, and independent energy system for the Philippines in the years to come,” she said.
Meanwhile, Energy Secretary Sharon Garin said that the removal of the excise tax may not compensate for the significant increase in fuel prices in the past two weeks, which has reached as much P40 per liter for diesel.
“Whether it’s P2 of excise tax or P4 or even P6, it’s not as big of an impact compared to what the jump is already. So that’s why the government is also focusing on assistance rather than control, because the price is going up and up, and out of control of the government,” she said.
But for Leyte Rep. Martin Romualdez, slashing fuel excise tax will still contribute to efforts to provide relief to consumers bearing the brunt of the oil price surges.
“The amount may be small, given that pump prices will increase again, but the government is providing other forms of assistance,” he said.
Under existing law, excise taxes are embedded in the retail price of fuel, which means every increase becomes part of the cost of commuting, delivering goods and running businesses.
Under the pending measure, one trigger for the slash or suspension of the excise tax is when the average Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately preceding the issuance of the suspension or reduction order, allowing government to act before the shock turns into a full-blown inflation surge.
A second trigger applies when a state of national emergency or calamity is declared by the President and the condition results in extraordinary increases in domestic pump prices of petroleum products, as certified by the Secretary of Energy, so the authority can be used when local price conditions become exceptional.
The bill provides that the suspension may be applied to specific petroleum products and may be implemented either as a full suspension or partial reduction of the applicable excise tax rates, depending on prevailing conditions and the targeted relief needed.
Any suspension or reduction authorized under the measure will be effective for a period not exceeding six months, unless extended or terminated earlier by Congress through a joint resolution.
To keep the grant of authority time-bound, the bill states that the President’s power to temporarily suspend or reduce the excise tax on fuel products may be exercised only until December 31, 2028.
