AS GLOBAL oil prices climb past the $100-per-barrel mark, lawmakers in the Senate of the Philippines are moving to cushion Filipino households from another wave of rising prices.
Two Senate panels, the committees on Energy and Ways and Means, have approved in principle several measures that would allow President Ferdinand Marcos Jr. to suspend or reduce excise taxes on petroleum products during economic emergencies.
At the center of the proposal is Senate Bill 1923, authored by Senator Bam Aquino, which seeks to amend the tax code and grant the executive branch the authority to immediately suspend fuel excise taxes when global market volatility threatens to push local commodity prices higher.
The measure comes as the price of Dubai crude oil has surged beyond $100 per barrel, raising concerns that the increase could soon ripple through the Philippine economy and drive up the cost of fuel, transportation, and basic goods.
Aquino said the bill aims to give the government the ability to act quickly before the situation worsens.
“Way back in 2017, we introduced a provision that allowed an automatic suspension of the excise tax once crude oil reached $80 per barrel. But that has already ended. It was only operational for three years,” Aquino said.
“That is why it would be good to have this proposal again. We know that when oil prices increase, the prices of goods also go up. So before that happens, we should already give the President the authority to suspend it so we can prevent the rise in the prices of goods,” he added.
The senator stressed that waiting until fuel prices spiral further could leave the government scrambling for solutions.
“We’re expecting this to go higher, lawmaking is not instant,” Aquino said. “Even if it is certified as urgent, it could still take about a month. So we want to be ready for the increases that we’re expecting.”
Aquino warned that surging fuel prices do not only affect transportation but also drive up the cost of everyday goods.
“When the prices of gasoline and diesel increase, the prices of all goods also go up,” he said. “Often, our government responds late and acts only after something bad has already happened.”
Economic managers, however, cautioned that suspending fuel excise taxes could cost the government more than P130 billion in lost revenues.
Aquino countered that the bigger issue lies in addressing corruption and ensuring that public funds are used properly.
“This argument about collections and revenue losses should also be paired with the proper use of public funds,” Aquino said. “We’re still in the middle of a scandal where trillions of pesos were lost to corruption. That is what we should address first. We should close the gaps and the leaks when it comes to corruption. That amount is far greater than the possible tax losses from suspending the excise tax on crude oil, gasoline, and diesel.”
Aside from suspending the excise tax, Aquino is also proposing the return of direct subsidies for public transport drivers and delivery workers whose incomes are heavily affected by fuel price increases.
“Meanwhile, the workers who are directly affected whose take-home pay is immediately reduced we should directly assist them and provide them with support,” Aquino said.
The Senate is now consolidating legislative proposals while waiting for the House of Representatives to transmit its version of the bill. Once received, senators aim to sponsor the measure on the plenary floor as early as next week.
Meanwhile, President Marcos said he is waiting for the final committee reports from both chambers before deciding whether to certify the measure as urgent, describing it as a “precautionary tool” to help safeguard the Philippine economy from the impact of soaring global fuel prices. (ABC)
