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Senate President Sherwin Gatchalian says rising oil prices justify temporarily suspending the excise tax on gasoline and diesel, citing the burden passed on to food and basic goods.
Senate President Sherwin Gatchalian said Sunday that the continuous increase in oil prices should be sufficient reason to temporarily suspend the excise tax on gasoline and diesel.
Fuel Costs Burden Consumers and Logistics
Gatchalian made the call in an interview on Super Radyo dzBB, arguing that fuel costs are passed on to consumers through higher food and commodity prices. He said diesel and gasoline are used by logistics companies, and the added cost is eventually reflected in food prices. Even before, he said, he had already proposed suspending the excise tax on gasoline to help bring down the prices of goods and prevent the cost from being passed on to other basic commodities.
Gatchalian also urged the government's economic managers to reconsider suspending the excise tax on gasoline and diesel, even if only temporarily. He said oil prices have risen above 80 dollars a barrel again and continue to climb, giving enough reason to suspend the tax. The Senate President's statement comes amid soaring global crude oil prices, which have driven local petroleum prices to high levels.
President Ferdinand Marcos issued Executive Order No. 125 in response to the surge in global crude oil prices. According to the order, the excise taxes on LPG, except when used as raw material for the production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are fully suspended. Marcos signed Republic Act 12316 into law in March, giving him emergency powers to suspend or reduce the excise tax rate on fuel.
Emergency Fuel Tax Suspension Triggers
Under the measure, the suspension or reduction may be implemented for up to three months if the average price of Dubai crude oil, based on the Mean of Platts Singapore or MOPS, reaches or exceeds 80 dollars per barrel for one month. Brent crude prices have hovered around 102 dollars per barrel, while the Philippine Stock Exchange index sank to 5,629 as crude neared 100 dollars per barrel.
Gatchalian said the economic managers should reconsider the suspension now, noting that the conditions for the emergency power have already been met. He stressed that the suspension would help ease the burden on consumers and prevent further increases in the prices of basic goods. The lawmaker's proposal is not new, as he had previously pushed for the suspension of the excise tax on gasoline when oil prices were also rising.
Economic Managers Urged to Act Immediately
He said the suspension should be done immediately because the continued increase in oil prices is already affecting the cost of food and other basic commodities. The call adds pressure on economic managers to act as global oil prices remain elevated and volatile.
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