MANILA — The government is actively reviewing whether to cut or suspend fuel excise taxes as global oil prices surge, but Malacañang said legal thresholds have yet to be met to trigger immediate relief for consumers.
Malacañang confirmed that while recent spikes have pushed Dubai crude prices beyond $100 per barrel, authorities are still evaluating if conditions under existing law warrant intervention, particularly the requirement that elevated prices be sustained over a specific period.
Palace Press Officer Claire Castro said the President’s authority to suspend or reduce fuel taxes depends on a formal recommendation from the Development Budget Coordination Committee (DBCC) and compliance with conditions set under the law.
“Nasabi ng Pangulo iyan dahil ayon sa naaprubahan na bill,ang Pangulo ay makakakilos at makakapagdesisyon lamang ayon sa recommendation ng DBCC (Development Budget Coordination Committee),” she said.
Castro explained that under current policy, the President may only act if the average price of Dubai crude oil exceeds $80 per barrel for at least 30 consecutive days prior to issuing an order.
Despite recent price spikes, she noted that the duration requirement has not yet been satisfied.
“Ayon nga kay DOF (Secretary Frederick) Go, wala pang 30 days sa ngayon. Pero, ngayon pa lamang ay inaaral na ang kondisyon sa pag-reduceor pag-suspend the excise tax on fuel,” she said.
Castro also clarified that excise taxes are imposed at the point of fuel importation, underscoring that no importation means no tax collection.
“Kung walang maaangkat, wala tayong mapag-uusapang excise tax. Pero kapag naisabatas naman po yan, asahan ang mabilis na aksyon para maibaba ang presyo ng fuel,” Castro said.
President Ferdinand “Bongbong” Marcos Jr. earlier assured the public that the government is closely monitoring oil market movements and is prepared to act once conditions allow, amid continued volatility driven by global tensions./PN
