MALACAÑANG on Monday, April 13, 2026, said suspending the value-added tax (VAT) on petroleum products is beyond the authority of President Ferdinand Marcos Jr. and requires an act of Congress.
Palace Press Officer Claire Castro clarified this following calls from business groups, including the Philippine Chamber of Commerce and Industry, to remove the VAT on fuel amid rising global oil prices.
“Sa ngayon, wala kasing batas na nagbibigay ng anumang emergency powers para sa Pangulo na siya ay mag-suspend ng VAT sa fuel products. Ito po ay nakasalalay po sa Kongreso (At present, there is no law granting the President emergency powers to suspend VAT on fuel products. This rests with Congress),” Castro said.
Under the Tax Reform for Acceleration and Inclusion (Train) Law, petroleum products are subject to a 12-percent VAT, on top of excise taxes. These taxes account for a significant portion of pump prices.
Castro said the administration balances the need to provide relief with maintaining government revenues.
“Ang Pangulo po kasi binabalanse po ang lahat… ang buwis din ay kailangan para sa pondo ng gobyerno para mayroon pa pong mga iba pang mga prayoridad (The President is balancing everything… taxes are needed to fund government priorities),” Castro said.
Government revenues fund key programs, including infrastructure, social services, and targeted subsidies. These cushion vulnerable sectors from rising costs.
The administration rolled out measures such as fuel subsidies for public utility vehicle drivers and service contracting programs to stabilize transport costs. The National Government continues to explore ways to mitigate the impact of high fuel prices on consumers and businesses.
While the VAT remains, Marcos signed Republic Act (RA) 12316. The law grants the executive branch the authority to suspend or reduce excise taxes on petroleum products in response to surging global oil prices brought about by the conflict in the Middle East.
RA 12316 empowers the President to suspend or reduce excise taxes once the average price of Dubai crude oil reaches or exceeds $80 per barrel for one continuous month. The law remains effective until Dec. 31, 2028.
The price of Dubai crude breached $100 per barrel on March 9. This raised fears of higher fuel costs in the Philippines and other oil-importing countries.
The law sets clear limits on the authority. Any suspension or reduction lasts for a maximum of three months at a time, and no more than one year total.
Taxes revert to their original rates one week after the average monthly price of Dubai crude falls below the $80 threshold, or after the three-month period expires. The Department of Energy certifies the price drops.
Exercising this authority, Marcos ordered the removal of the excise tax on liquefied petroleum gas (LPG) and kerosene to cushion the impact of the looming energy crisis.
Marcos said during a press conference the removal of the excise tax helps Filipino families with their daily needs.
“Tinanggal ko na ang excise tax sa LPG at kerosene, katumbas nito ay P3.36 bawas kada kilo ng LPG o halos P37 sa isang tangke ang mababawas na presyo (I have removed the excise tax on LPG and kerosene, which is equivalent to a P3.36 reduction per kilo of LPG, or a price cut of almost P37 per tank),” Marcos said.
“P5.60 kada litro ng kerosene, ibig sabihin mas mababa ang gastos sa pagluluto at sa araw-araw na pangangailangan ng pamilya (P5.60 per liter of kerosene, which means lower costs for cooking and for the daily needs of the family),” Marcos said.
Marcos signed Executive Order 110 declaring a state of national energy emergency. The order created the Unified Package for Livelihoods, Industry, Food, and Transport (Uplift) Committee to address dangers to the energy supply.
The Uplift Committee meets on Tuesday, April 14, 2026, to discuss strategies to lower prices and normalize oil and food supplies.
Marcos assured the public of a sufficient supply of basic food commodities, including rice, corn, vegetables, sugar, fish, poultry products and eggs.
He assured prices of these commodities remain stable until the end of April.
“Inutusan ko na ang Department of Agriculture at saka ‘yung tariff commission na pababaain ang taripa sa mga inaangkat na pagkain upang makatulong sa pagbaba ng presyo para sa (I have instructed the Department of Agriculture and the Tariff Commission to lower the tariffs on imported food to help reduce prices for) consumers,” Marcos said.
“Malinaw ang directive hindi ito pwede gawing basta-basta, bawat hakbang malinaw ang proteksyon sa ating local na produksyon, poprotektahan natin ang mga consumers, magsasaka at industriya, yan ang ating hinahanap na balance, dahil (The directive is clear — this cannot be done haphazardly. Every step includes clear protections for our local production; we will protect consumers, farmers, and industry. That is the balance we are looking for, because) everything as you know the economy is a complicated system,” Marcos said. / FROM PNA, TPM / SUNSTAR PHILIPPINES