Bill Seeks to Grant President Power to Suspend Fuel Excise Tax During Crises

A measure has been filed in the House of Representatives seeking to grant the President authority to temporarily suspend excise taxes on petroleum products in times of extraordinary circumstances, particularly amid rising global oil prices triggered by geopolitical tensions in the Middle East.

The proposal would amend Section 148 of the National Internal Revenue Code to allow the Chief Executive, upon recommendation of the Secretary of Finance, to either fully suspend or partially reduce fuel excise taxes when specific economic conditions are met.

Under the bill, the President may exercise this power if the average Dubai crude oil price reaches or exceeds $80 per barrel for at least three consecutive months. The authority may also be invoked if a national emergency or calamity results in extraordinary increases in domestic fuel prices, as certified by the Secretary of Energy.

The measure outlines that any suspension must be temporary and subject to clear triggers. It also requires the executive branch to submit a report to Congress within 15 days of implementation and monthly thereafter. The report must detail the factual basis for the suspension, estimated foregone revenues, and its projected impact on inflation and economic activity.

President Ferdinand Marcos Jr. earlier said he would consult congressional leaders on granting him authority to reduce fuel excise taxes if global oil prices continue to climb.

“It is not going to be a permanent measure. It will be something that we will dispose of as soon as the crisis is over,” Marcos said.

The proposal comes as oil markets react to heightened conflict involving the United States, Israel and Iran, raising concerns about potential disruptions in major supply routes such as the Strait of Hormuz.

However, some lawmakers from the Makabayan bloc criticized the call for emergency powers, arguing that Congress should instead pass pending bills seeking the permanent removal of excise and value-added taxes on petroleum products.

“We condemn President Ferdinand Marcos Jr.’s request for emergency powers to suspend excise taxes on oil as a deceptive maneuver that ignores legislative solutions already within Congress’ reach,” they said.

With oil prices projected by analysts to range between $85 and $90 if tensions persist, the measure is expected to spark debate on balancing consumer protection with fiscal stability.