Manila: President Ferdinand R. Marcos Jr. has indicated that he might seek 'emergency' powers to reduce the excise tax on petroleum products if the price of Dubai crude oil surpasses USD80 per barrel. This consideration arises amid ongoing tensions in the Middle East.
According to Philippines News Agency, during a press conference at Malaca±an Palace, President Marcos clarified that the proposed tax cut is still under discussion and is not a definite plan. He stated that discussions with leaders from both the House and Senate are ongoing, and any excise tax reduction would be a temporary measure to alleviate economic pressures.
Finance Secretary Frederick Go explained that the decision to implement a tax cut would depend on the price of oil and the duration of its increase. Currently, Dubai crude is trading at approximately USD76 to USD78 per barrel. Go emphasized the importance of a sustained price increase above USD80 before taking action.
President Marcos assured the public of sufficient oil supply in the country, with stockpiles lasting between 29 to 67.5 days depending on the product. While the government has prepared for scenarios where Dubai crude prices range from USD80 to USD90 per barrel for two months, contingency measures such as targeted fuel subsidies for the transport and agricultural sectors are being considered.
The President highlighted that the government is exploring options to ease transport costs for workers and maintain stable public transport fares. The Department of Energy is also coordinating with oil companies to ensure any price increases are gradual to minimize consumer impact.
In response to the potential excise tax suspension, senators expressed their support for granting the President the authority to reduce fuel excise taxes once global oil prices reach the USD80 threshold. Senate Majority Leader Juan Miguel Zubiri and Senator Erwin Tulfo both endorsed the proposal, emphasizing the need to shield consumers from the economic ripple effects of rising fuel costs.
The Senate Foreign Relations Committee has scheduled a hearing to discuss the proposed tax suspension, fuel subsidies, and other contingency measures in light of the current crisis.
