PRESIDENT Ferdinand Marcos Jr. on Tuesday said he would ask Congress for the authority to reduce excise taxes for petroleum products if Dubai crude prices exceed $80 per barrel.
Speaking to reporters, Marcos said the move would be an “emergency measure” and would be lifted once oil prices stabilize.
On Tuesday, Dubai crude was trading in the range of $76 to $78 per barrel, up sharply from the average of $63 per barrel in late 2025 because of the widening war in the Middle East.
The Tax Reform for Acceleration and Inclusion Law mandates the automatic suspension of excise taxes on petroleum products if the average global oil price reaches $80 per barrel for three consecutive months.
The president’s economic team will work with Congress to secure the authority for the president to temporarily reduce excise taxes on fuel should the price of Dubai crude oil exceed $80 per barrel, Finance Secretary Frederick Go said on Tuesday.
“Amid the ongoing conflict, we remain vigilant, prepared, and committed to protecting the welfare of all Filipinos,” Go said in a statement.
He added they are closely monitoring developments in the Middle East, particularly their impact on global oil markets and the Philippine economy.
He emphasized that the proposed authority to reduce excise taxes is a precautionary measure and will not be automatically exercised if oil prices breach the threshold.
“To be clear, this does not mean the authority will be automatically exercised,” Go said.
“It is a precautionary measure — a ready policy tool that the president may use, if necessary, to act swiftly in protecting Filipino consumers and safeguarding the broader economy,” he added.
The Finance chief added that the decision to cut excise taxes would depend on prevailing conditions, including the level and persistence of global oil price increases.
“Even if it (the price of crude) exceeds $80 per barrel, that doesn’t mean we react right away. It also has to exist for a certain period of time. If it goes up to $80 for just one day and then drops back to $77 the next day, why should we react?” he added.
Meanwhile, Marcos said there was no significant disruption yet in the global supply chain despite escalating tensions in the Middle East and assured the public that the country maintained oil stockpiles sufficient to cover about 50 to 60 days of supply.
He said the available reserves include diesel, sufficient for about 50.5 days; fuel oil and gasoline, each sufficient for about 51.5 days; kerosene, sufficient for about 67.5 days; jet fuel, sufficient for about 58 days; and liquefied petroleum gas (LPG), sufficient for about 29 days.
He also said oil price shocks take time to move through the system before daily consumers feel the impact on basic commodities.
“It will take time for any of the effects of the oil price shocks to work through the system. And of course, the prayer that we have is that before they work their way through the system, we hope the situation will be resolved so the public will not feel the impact too much,” Marcos said.
“If this drags on, that’s when it will be felt,” he added.
The president said that the government has prepared various scenarios, with estimates from the United States suggesting the conflict could last four to five weeks. Government agencies were preparing more detailed assessments as developments unfold, he added.
He said that the government was also monitoring the dollar’s movement, noting that remittances were sent in US currency, although the peso has remained stable so far.
Marcos also outlined several interventions to mitigate the impact of potential oil price increases, including fuel subsidies for affected sectors such as transportation and agriculture. He said the government was also looking at the possibility of easing the transport cost burden for commuters, especially the working public, by providing no-fare bus rides along major routes and holding fares down.
The president said the Department of Energy was also in close coordination with oil firms in the country to ensure that increases on prices will be implemented on a staggered basis.
Meanwhile, two senators filed separate bills which authorize the president to suspend or reduce excise tax on gasoline and diesel if its average prices reach or exceed $80 per barrel based on the Mean of Platts Singapore.
Sen. Bam Aquino on Tuesday filed Senate Bill (SB) 1923 to protect Filipinos from the impact of sudden spikes in fuel prices.
Sen. Joel Villanueva filed SB 1922, which mandates the Department of Energy to assess current market conditions to help the Department of Finance complete its recommendations to the president.
Aquino filed SB 1923 to amend the National Internal Revenue Code of 1997 to allow the chief executive to suspend the collection of excise tax on fuel in times of national emergencies or when public interest so requires, upon the recommendation of the secretary of Finance.
Aquino said the bill aims to equip the government “with a practical tool to shield consumers, support transport operators and small enterprises, and help stabilize local prices when global conditions threaten domestic economic stability.”
Speaker Faustino Dy III said that the House of Representatives was open to working with the Senate on the fuel excise tax.
In a statement, Dy said in Filipino and English that it was clear that Filipinos would feel the effects — “in fares, in the cost of food, and other prime commodities” — if the price of Dubai crude exceeds $80 per barrel.
He said the House was open “to work with the Senate to study and, if needed, amend the law to give the president enough power to reduce the excise tax in times when there is a drastic increase in the price of oil.”
The move to grant the president emergency powers to suspend the excise tax on fuel products and fuel subsidies drew support from senators on both sides of the political fence.
From the majority bloc, Sens. Sherwin Gatchalian, Erwin Tulfo, JV Ejercito and Juan Miguel Zubiri said they supported moves to cushion the impact of rising oil prices, as did Sens. Bong Go and Francis Escudero.
