Philippine President Ferdinand R. Marcos, Jr. on Tuesday said he would ask Congress to grant him emergency powers to reduce excise taxes on petroleum products if global oil prices surge amid the escalating war in the Middle East.
The President said he plans to discuss the proposal with lawmakers should Dubai crude hit $80 per barrel.
“We are discussing, and it could be helpful to give the President the authority to reduce the excise tax on petroleum products should Dubai crude exceed $80 per barrel,” he told a news briefing. “We’re not yet there. But if that happens, then maybe this is one tool that we will have.”
Mr. Marcos added that he would raise the matter with congressional leaders to determine whether it should be treated as an emergency measure rather than a permanent policy change.
“I will discuss it with the leadership of Congress and see if it’s going to be an emergency measure — not a permanent measure — something that we will dispose of as soon as the crisis is over,” he added.
The Philippines imports most of its oil requirements from the Middle East, leaving it exposed to geopolitical tensions that could drive domestic pump prices higher if disruptions persist.
The crisis erupted after the US and Israel carried out coordinated airstrikes on multiple Iranian military and nuclear facilities, part of what officials described as a major joint campaign targeting Tehran’s strategic capabilities.
In response, Iran launched widespread missile and drone strikes against US military bases and allied territories across the Middle East, including in Iraq, the United Arab Emirates, Qatar, Bahrain, Kuwait and Saudi Arabia.
The retaliatory attacks prompted airspace closures, air defense interceptions and reports of civilian casualties, further deepening regional tensions and raising concerns about potential disruptions to global energy supplies.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) law, excise taxes on petroleum products were increased in three tranches from Jan. 1, 2018 to Jan. 1, 2020.
The measure imposed higher levies on all oil and fuel products. However, it also allows the suspension of scheduled excise tax increases if the three-month average Dubai crude price, based on Mean of Platts Singapore (MOPS), hits $80 per barrel.
From 2018 to 2020, the biggest excise tax increases were applied to diesel fuel oil, liquefied petroleum gas and bunker fuel oil, with rates rising from P2.50 to P6 per liter. — Chloe Mari A. Hufana
