OUR political leaders and economic managers have a stock answer whenever ordinary Filipinos appeal for the removal of the excise tax and value-added tax (VAT) on petroleum products. In disapproving the prayers of the poor, they cite the would-be significant loss in tax collection and the adverse impact it would have on the government’s capacity to deliver public services. Now, our public officers are at it again.
According to a March 9, 2026, news report quoting the Department of Finance (DOF), the government stands to lose approximately P14.6 billion in revenues from the removal of the 12-percent VAT on fuel products if the suspension begins in May.
If both the excise tax and VAT on fuel are suspended, the DOF and the Bureau of Customs warn of a total projected revenue loss ranging from P136 billion to P330 billion, depending on global oil prices and if the suspension lasts until Dec. 31, 2026.
So goes the peso tag. And the government’s perennial excuse for denying the proposal: the adverse impact on its capacity to fulfill its obligation to provide social services to every Filipino.
But minimum wage earners, the riding public, and ordinary consumers do not see it that way. They were begging for the reduction of a few pesos from fuel prices that have been skyrocketing beyond the government’s control. They are once more petitioning for a reprieve from the prices of petroleum products that have soared even higher after the United States and Israel began attacking Iran on Feb. 28.
The poor do not see how the temporary relief they were asking for could be a burden to the government’s obligation to deliver basic services. Certainly not the temporary relief from the excise tax of P10 per liter on gasoline, P6/liter on diesel, and P5/liter on kerosene imposed under the Tax Reform for Acceleration and Inclusion law. But they surely know that the corruption of some P1.089 trillion in public funds allocated for flood-control projects since 2023 — according to Greenpeace Philippines — is.
The underprivileged voters who beg for the relief of a few pesos for their daily sustenance would remember the corrupt politicians who pocketed billions that could have been spent on building thousands of kilometers of farm-to-market roads, irrigation projects, classrooms, hospitals, and renewable energy infrastructure.
They should not forget, come election day, the unscrupulous politicians who know no public welfare. Those who, while in public office, lined their pockets, acquired properties abroad and in posh villages at home, and bought fleets of expensive aircraft and cars.
The people should keep in mind who were the so-called champions of public good and advocates of transparency and accountability in government, but are selective on whose affidavits to believe. Investigators who are indifferent to or refuse to follow where evidence leads, or at least to trail the leads to the evidence required to hold corrupt public officials liable for the money they plundered from state coffers.
But while the next elections are still two years away, we should not give up and must continue to demand transparency and accountability and what is here and now: the economic crises the nation faces.
Urgent measure
Thank heavens, then, that on March 12, the prevailing socio-politico-economic circumstances forced President Ferdinand Marcos Jr. to certify as urgent House Bill 8418. If passed, he will be vested with the power to temporarily suspend or reduce excise taxes on petroleum products during severe economic disruptions. The Senate, for its part, committed to tackle the consolidated version of the proposed piece of legislation on March 16.
The end goal is to provide the chief executive the wherewithal to immediately act on the domestic impact of the global crisis.
Global oil production dropping by 8 million barrels per day (bpd); the halt in the flow of nearly 20 million bpd of crude oil and liquefied natural gas through the Strait of Hormuz; oil producers forced to cut production by 10 million bpd, according to reports — all these started to happen in the first week of March. The measure that will address the crisis is likely to be enacted later in the third week, and the hoped-for relief to be felt by the fourth week. That is how fast we can react to a pressing global and national issue.
Meanwhile, as a knee-jerk reaction to the global oil shortage, not to mention the security of our countrymen in the Middle East, a plethora of “bright ideas” to address the global crisis emerged.
Malacañang has decreed a four-day workweek and the rationalization of energy consumption to save on operating costs.
The expansion of the Assistance to Individuals in Crisis Situations was proposed, but coming up with a faithful list of existing qualified beneficiaries, and who can be added to it, is a challenge.
Given the proposal to issue fuel subsidies, the prioritization per vehicle classification, which has long been an issue, resurfaces. The release, whether in cash or through fleet cards, as suggested, so that the drivers themselves, not the operators, will be the ones to receive and use the subsidy, will have to be resolved.
But the more contentious proposal, besides the suspension of the excise tax and VAT, is repealing the Oil Deregulation Law. This has been a controversial issue, and the law’s passage caused a public outcry. This has been reiterated countless times, but remains unheeded. It resurfaced after Russia invaded Ukraine in February 2022, but was ignored. Despite our continuing experience with a manifest price cartel among fuel distributors that defeats the very purpose of deregulation, government officials’ proposal is to review, rather than rescind, the law.
During these difficult times, and amid the crisis we are facing, we should all share the burden than rely entirely on the government. Businesses should not be motivated by greed. Service providers should charge fairly and equitably. And consumers with enough money should buy only what they need. There are many ways we can to help each other survive. After all, we are on the same boat.
atty.edarevalo@gmail.com
