Manila: Any reduction or suspension of excise tax on petroleum products will apply only to incoming fuel shipments and not to existing inventory, Malacañang clarified on Wednesday. According to Philippines News Agency, Palace Press Officer Claire Castro emphasized in a radio interview that the imposition, reduction, removal, or suspension of excise tax applies solely to newly arriving fuel supplies. This clarification comes as Republic Act (RA) 12316, signed by President Ferdinand R. Marcos Jr. on March 25, is set to take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation. RA 12316 grants the President emergency powers to temporarily suspend or reduce excise tax on petroleum products in response to rising global oil prices due to the Middle East conflict. Castro noted that the current inventory held by oil companies will not be covered by the adjustment, explaining that excise taxes are imposed upon the entry of fuel products, which is why only new shipment s will be affected. "The excise tax will not be imposed on their current inventory. Only incoming supply will be covered by any reduction or suspension because it is imposed upon entry," Castro stated. She mentioned that there is no estimate yet on how much fuel prices may decrease, as global oil prices remain volatile. The government is still computing possible adjustments and monitoring trends in crude oil prices. Emergency powers may be used if global oil prices reach USD80 per barrel for 30 consecutive days, Castro added. "They still need to compute this because, as we said, crude oil prices are fluctuating. So, we cannot yet provide specifics on how this will be implemented, or the percentage reduction, if any," she explained. "The fuel price must be at USD80 per barrel continuously for a month. If it suddenly drops to USD79 or USD78, the powers cannot be used immediately. The excise tax cannot be reduced or suspended if the price of fuel drops," Castro concluded.