SEN. Christopher “Bong” Go called for more inclusive and responsive fuel relief measures to include farmers and fisherfolk in the subsidy programs being implemented by the government amid persistently high oil prices.
Go, a co-author and co-sponsor of Republic Act (RA) 12316, said the law provides a timely mechanism to cushion the impact of rising fuel costs but warned that gaps in assistance programs continue to disadvantage key sectors in food production.
The senator raised concerns related to his office by stakeholders in the agriculture and fisheries sectors, who reportedly have not benefited from fuel subsidy initiatives, which largely focus on the transport industry.
“There are farmers and fishermen who say they are not included in the list of those receiving aid. Usually, only the transport sector is given. We need to ensure that no one is left behind, especially the sectors that are directly affected by the increase in oil prices,” Go said.
He stressed that escalating fuel prices directly affect food production and distribution, warning that neglecting primary producers could worsen the cost of basic commodities.
RA 12316 establishes a legal framework allowing the government to temporarily suspend or reduce excise taxes on petroleum products during periods of sustained high global oil prices.
Under the measure, the president may implement such adjustments upon the recommendation of the Development Budget Coordination Committee, in coordination with the Department of Energy, when the average Dubai crude oil price reaches or exceeds $80 per barrel for one month, based on the Mean of Platts Singapore (MOPS).
Go described the law as a crucial intervention tool for an economy vulnerable to external energy shocks.
"The purpose of this law is to have an immediate mechanism to alleviate the impact of high oil prices on our countrymen. When the price of crude oil increases in the global market, it is immediately felt in the daily expenses of every Filipino," he said.
The law allows either full suspension or partial reduction of excise taxes, depending on prevailing economic conditions, and may apply to specific petroleum products. However, these measures are subject to strict safeguards.
Any tax adjustment may only be implemented for a maximum of three months at a time, with limits set within a calendar year. The law also mandates the automatic reinstatement of original excise tax rates once global oil prices fall below the threshold or after the authorized period expires.
The authority granted under RA 12316 remains valid until Dec. 31, 2028.
“This is not just a tax cut. There is a clear basis for when it will be implemented and for how long. Its goal is to provide relief at the right time without affecting the overall balance of the economy,” Go explained.
