Marcos Signs Law Allowing Suspension of Fuel Excise Tax

President Ferdinand Marcos Jr. has signed Republic Act 12316, granting the government the authority to suspend or reduce excise taxes on petroleum products in response to rising fuel prices, though implementation will depend on timing and economic conditions.

The law allows the President, upon recommendation of economic managers, to adjust fuel excise taxes when global oil prices reach certain thresholds, and to implement such measures for a limited period. Marcos, however, said he would wait for the “best time” to enforce it.

The measure aims to cushion consumers from volatile global oil markets while ensuring safeguards on revenue and economic stability. It also requires the government to submit detailed reports on the impact of any tax suspension, including inflation effects and possible revenue losses.

In an earlier address, Marcos assured the public that fuel supply remains stable despite global tensions. “Although we cannot be assured right now of the supply, we can be sure that at least for 45 days we will be alright. I think that we can be fairly confident – we can be confident that after the 45 days, we still have (oil supply that) already arrived here in the Philippines,” the President said.

He added that supply chains are being strengthened through diversified sourcing. “We will (already have) a flow of oil, not just one delivery, not just two deliveries but a flow of petroleum and petroleum-related products,” he said.

On the possibility of government intervention in the oil industry, Marcos said: “We don’t want to get into that discussion.”

Meanwhile, lawmakers expressed readiness to support additional measures, including possible special sessions if needed, as the government moves to address the ongoing energy situation.