MANILA — President Ferdinand Marcos Jr. is considering a reduction in fuel excise taxes should global oil prices reach $80 per barrel, a move that could be triggered under a proposed emergency powers measure aimed at cushioning Filipinos from surging petroleum costs.
Marcos said the proposed legislation would allow the government to intervene if the average price of Dubai crude oil breaches $80 per barrel for at least one month, potentially paving the way for a temporary reduction in fuel excise taxes.
The President said he plans to certify the bill as urgent once the committee reports in both chambers of Congress are finalized.
“Because there’s no point of declaring it as urgent before the committee report has been completed,” Marcos said.
Marcos explained that the measure would give the executive branch the authority to respond quickly to sustained increases in global oil prices.
“It’s very, very simple. What we ask of the legislators is very simple. It’s that when the price of oil – at least this is the original version – when the price of oil has breached USD80 per barrel on average for a month, then the emergency powers can be exercised,” Marcos said.
However, he clarified that reaching the $80 threshold would not automatically lead to a reduction in fuel excise taxes but would empower the President to implement the measure if necessary.
The Chief Executive also assured the public that the country’s fuel supply remains stable despite global uncertainties affecting oil markets.
“In terms of supply, we are in good shape and not only do we have inventory in the Philippines, we also are waiting some supplies coming in that are in transit,” Marcos said.
He added that the government is closely monitoring oil shipments passing through areas affected by geopolitical tensions to ensure accurate projections of supply availability.
Marcos acknowledged that it remains uncertain how long the global tensions affecting oil markets will continue.
As part of contingency measures, the government is also exploring alternative sources of fuel to strengthen the country’s supply.
“Naghahanap tayo ng iba’t ibang lugar na makakapagbigay ng supply sa atin other countries [that] we normally do not buy oil from,” Marcos said, adding that the Philippines hopes to secure agreements with new suppliers to bolster its fuel reserves./PN
