LAWMAKERS are ramping up calls for emergency measures to cushion consumers from rising fuel prices as global oil markets react to escalating conflict in the Middle East, warning that pump price spikes could quickly ripple through food, transport and electricity costs.
Senate Majority Leader Juan Miguel Zubiri said he supports granting President Ferdinand Marcos Jr. the authority to reduce or suspend excise taxes on fuel if the conflict drags on, describing the move as an urgent consumer protection measure.
“I am in favor of granting the president those powers to be able to lower the excise tax on fuel. That move will definitely help cushion the impacts [of] high fuel cost[s] due to the ongoing conflict in the Middle East,” Zubiri said in a statement.
Marcos earlier signaled he may ask Congress for emergency powers to temporarily cut fuel excise taxes should global oil prices continue to surge.
Under the Tax Reform for Acceleration and Inclusion law, excise taxes add P10 per liter on gasoline, P6 per liter on diesel and P3 per liter on kerosene. The excise is imposed on top of the base pump price and is included in the value-added tax (VAT) base, meaning consumers effectively pay VAT on the excise as well.
Zubiri said suspending or reducing the excise could deliver immediate relief at the pump and temper the VAT component tied to the tax, resulting in per-liter savings that go beyond the excise amount alone.
He warned that unchecked oil price spikes could trigger a chain reaction across the economy.
“When oil prices suddenly surge, it’s not only motorists who are affected. Food prices, transport fares, and electricity bills rise as well,” he said, adding that the Senate is prepared to act with urgency on time-bound, clearly defined powers for the Executive.
Similar proposals have gained traction in the chamber.
Sen. Francis Escudero urged the Department of Energy (DOE) to roll out a comprehensive contingency plan to guard against supply disruptions and sharp price swings, noting that the Philippines imports about 99 percent of its oil requirements.
“This kind of crisis is not new to us, so the country must be prepared even before the situation worsens,” Escudero said, calling for clear measures to ensure adequate supply, stabilize local markets and protect consumers from sudden price spikes.
He also asked the Department of Trade and Industry (DTI) to prepare calibrated price monitoring mechanisms and, if necessary, temporary price caps on essential goods should fuel-driven inflation accelerate. Transparency and regular advisories from agencies such as the DOE and DTI, he said, would be crucial to prevent panic-driven behavior in the market.
Last week, even before renewed tensions in the Middle East, local oil firms announced price increases of as much as P1.20 per liter for diesel effective March 3. Industry sources have warned of further adjustments in the coming days, with some estimates pointing to hikes of up to P1.90 per liter.
For his part, Sen. Francis Pangilinan called for both the suspension of fuel excise taxes and the activation of existing fuel subsidy programs for the transport sector, farmers and fisherfolk.
“We have fuel subsidy programs for the transport sector, for farmers, and for fisherfolk because when oil prices rise, small workers, farmers, and fisherfolk bear the brunt of the hardship,” he said, adding that a temporary suspension of excise taxes could yield savings of P3 to P6 per liter.
Pangilinan also filed proposed Senate Resolution 325 seeking swift government action to ensure the safety of overseas Filipino workers in the Middle East and to address the broader economic impact of the conflict.
Meanwhile, Sen. Joel Villanueva filed Senate Bill 1922 authorizing the President, upon recommendation of the finance and energy departments, to suspend or reduce excise taxes on gasoline and diesel once global crude prices reach or exceed $80 per barrel based on the Mean of Platts Singapore.
“In times of global uncertainty, our government must act with both compassion and prudence,” Villanueva said. He noted that while excise taxes are a key fiscal instrument, extraordinary global conditions warrant calibrated and responsive mechanisms that balance revenue considerations with consumer protection.
Under his proposal, the DOE would assess prevailing market conditions while the Department of Finance evaluates inflationary pressures, revenue implications and macroeconomic stability before recommending action to the President. The suspension would be automatically lifted once global oil prices stabilize.
The flurry of proposals underscores growing concern among policymakers that fuel-driven inflation could undermine economic recovery and household purchasing power if global tensions persist.
While lawmakers acknowledged the fiscal trade-offs of suspending excise taxes, they stressed that targeted, time-bound relief — combined with contingency planning and close coordination among agencies — could help shield families, small businesses and key sectors from the worst effects of another global oil shock. (KOC)