THE government is accelerating emergency fuel imports with the Bureau of Internal Revenue (BIR) facilitating a special permit for PNOC Exploration Corp. (PNOC-EC) to bring in petroleum products.
The BIR’s Large Taxpayers Service (LTS) issued the permit in line with Executive Order (EO) 110, which declared a national energy emergency and authorized a unified response package covering livelihoods, industry, food and transport.
PNOC-EC had notified the tax bureau of its plan to undertake emergency petroleum imports to help stabilize domestic supply.
The BIR said it worked closely with the state-run firm to complete documentary and procedural requirements, allowing for the expedited processing of the transaction.
“The BIR, through its Large Taxpayers Service, will continue to work closely with PNOC to ensure the timely processing of requirements for current and future emergency fuel importations, in support of the whole-of-government response authorized under Executive Order 110 to help safeguard the country’s energy supply,” BIR Commissioner Charlito Martin Mendoza said.
He added that they were already coordinating with PNOC-EC on documentation for future fuel shipments, signaling that additional imports may be needed as the government moves to secure supply amid global oil market uncertainties.
Beyond supply-side interventions like fuel importation, meanwhile, GlobalSource Partners economist and former Bangko Sentral ng Pilipinas deputy governor Diwa Guinigundo emphasized the need for a broader and carefully calibrated policy toolkit.
This includes possible fiscal measures such as temporary and targeted reductions in fuel excise taxes or value-added tax during periods of extreme price spikes, although he stressed that such steps come with trade-offs.
“Such measures can directly cushion consumers and reduce inflationary pressures,” Guinigundo said.
“However, the tax decision should be weighed very carefully because suspending the implementation of any tax measures means foregoing that part of public revenues,” he added.
“Either the government imposes higher taxes in some areas, or must borrow more from the capital markets. Either way puts more pressure, more burden, on the Filipino taxpayers.”
Targeted subsidies were also identified as a more efficient response than broad price controls. These could include fuel assistance for public transport operators and the agriculture sector as well as cash transfers to vulnerable households and support for micro, small and medium enterprises affected by rising energy costs.
At the same time, Guinigundo underscored the importance of fully utilizing the actionable components already embedded in EO 110.
These include diversifying fuel supply sources, strengthening strategic stockpiling, promoting energy conservation and optimizing the country’s power generation mix to reduce reliance on oil.
“That said, the growing share of renewable energy provides a medium-term buffer and should be accelerated further,” he said.