Manila: The Development Budget Coordination Committee (DBCC) is finalizing its proposal on possible fuel excise tax relief as pump prices continue to rise, Malaca±ang said Thursday.
According to Philippines News Agency, Palace Press Officer Claire Castro indicated that the matter was not discussed during Wednesday's 11th Economy and Development Council meeting at the Palace but remains under evaluation by the economic team. 'Nakausap po natin si (Budget) Secretary Kim de Leon at ito po ay kanilang e-evaluate at for finalization. Kapag na-finalize na po ay ibibigay po agad nila ang rekomendasyon sa Pangulo (We have spoken with Budget Secretary Kim de Leon, and they are currently evaluating and finalizing the matter. Once finalized, they will immediately submit the recommendation to the President),' Castro said in a Palace briefing.
The DBCC's review follows the Department of Energy's (DOE) formal certification that the one-month average price of Dubai crude reached USD99.41 per barrel from Aug. 13 to Sept. 11, surpassing the USD80-per-barrel threshold set under Republic Act 12316 for potential suspension or reduction of fuel excise taxes.
Under RA 12316, the President may, upon the recommendation of the DBCC and in coordination with the Energy Secretary, suspend or reduce excise taxes on specified petroleum products when the one-month average Dubai crude price reaches or exceeds USD80 per barrel. The relief may be granted for up to three months per instance.
The review comes amid another significant round of fuel price increases this week. For Sept. 15 to 21, gasoline prices increased by as much as PHP5.70 per liter, diesel by PHP4.31 per liter, and kerosene by PHP4.62 per liter, according to the latest adjustments announced by fuel companies. The latest hikes followed another round of increases the previous week.
The DOE has attributed the sustained pressure on domestic fuel prices to rising international oil prices amid the continuing conflict and supply disruptions in the Middle East, including developments affecting oil shipping through the Strait of Hormuz.
Last April, Marcos invoked his power to suspend excise taxes on LPG and kerosene following the DBCC recommendation. Taxes were restored in July after oil prices fell below the statutory threshold.
