Marcos eyes cut in oil excise tax

Marcos Eyes Cut in Oil Excise Tax 5 Key Insights to Navigate the Upcoming Price Shifts

In response to the rising cost of oil, President Ferdinand Marcos Jr. has announced plans to seek congressional authority to reduce excise taxes on petroleum products if Dubai crude prices exceed $80 per barrel. This move is seen as an emergency measure designed to cushion the impact of increasing oil prices on Filipino consumers.

1. The President's Emergency Measure
The plan is for the President to request congressional authority to temporarily reduce excise taxes on fuel products if the price of Dubai crude oil exceeds $80 per barrel. This move aims to mitigate the impact of rising oil prices on Filipino consumers.

2. Automatic Suspension of Excise Taxes
The Tax Reform for Acceleration and Inclusion Law mandates the automatic suspension of excise taxes on petroleum products if the average global oil price reaches $80 per barrel for three consecutive months. However, the President's team is working with Congress to secure the authority for the President to temporarily reduce excise taxes on fuel products should the price of Dubai crude oil exceed $80 per barrel.

3. Monitoring Developments in the Middle East
Finance Secretary Frederick Go has emphasized that the government is closely monitoring developments in the Middle East, particularly their impact on global oil markets and the Philippine economy. This is a precautionary measure to ensure that the country is prepared for any potential shocks from rising oil prices.

4. Proposed Interventions to Mitigate the Impact
The President has outlined several interventions to mitigate the impact of potential oil price increases, including fuel subsidies for affected sectors such as transportation and agriculture. He has also proposed easing the transport cost burden for commuters by providing no-fare bus rides along major routes and holding fares down.

5. Congressional Support for the Measure
Several senators from both sides of the political fence have expressed support for the move to grant the President emergency powers to suspend the excise tax on fuel products and fuel subsidies. This growing consensus among lawmakers demonstrates a recognition of the need to address the concerns of Filipino consumers in the face of rising oil prices.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

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