ILOILO City Lone District Representative Julienne “Jam” Baronda has filed House Bill 8359 in the House of Representatives seeking to grant President Ferdinand Marcos Jr. limited authority to temporarily suspend or reduce excise taxes on petroleum products during national or global emergencies to cushion Filipino consumers from rising fuel prices.
Baronda said the proposed measure, titled the “Emergency Petroleum Excise Tax Adjustment Act,” aims to address the economic impact of global events that trigger sudden increases in oil prices.
In the explanatory note of the bill dated March 9, 2026, Baronda emphasized the vulnerability of the Philippines to global fuel price shocks.
“Recent escalation of armed conflict in the Middle East has created uncertainty in global energy markets and caused increases in international crude oil prices. As a country that relies heavily on imported petroleum, the Philippines is particularly vulnerable to these external shocks,” Baronda said.
She said the rising oil prices affect multiple sectors of the economy and ultimately burden consumers.
“Rising fuel prices quickly translate into higher transportation costs, increased electricity generation expenses, and higher prices of basic goods, placing a significant burden on Filipino consumers and businesses,” she added.
Under the current system, excise taxes on petroleum products are fixed under Section 148 of the National Internal Revenue Code of 1997, as amended by Republic Act 10963, also known as the Tax Reform for Acceleration and Inclusion (Train) Law.
These taxes are an important source of government revenue, but Baronda said the existing framework does not provide enough flexibility for the government to respond quickly during extraordinary global situations.
“While these taxes are an important source of government revenue, the law does not provide sufficient flexibility for the government to respond quickly to extraordinary global events that sharply drive up fuel prices,” Baronda said.
The proposed bill seeks to amend the National Internal Revenue Code by allowing the President, under clearly defined conditions, to temporarily suspend or reduce excise taxes on petroleum products when international crude oil prices surge significantly due to global emergencies.
The authority may be exercised only after the Finance secretary certifies that such action is necessary and after consultation with the Energy and Trade secretaries.
According to the measure, the authority may be triggered when global crises cause extraordinary increases in international crude oil prices or when domestic fuel prices rise sharply and continuously, placing pressure on the national economy.
Baronda said the measure is designed to provide relief to consumers while ensuring that the policy will not compromise fiscal responsibility.
“To ensure accountability and fiscal responsibility, the proposed measure includes safeguards such as prior certification from the Department of Finance, a strict six-month limit on the suspension or reduction, and mandatory reporting to Congress,” she said.
Under the bill, any suspension or reduction of petroleum excise taxes will be temporary. The law requires that excise tax rates automatically revert to their original levels once the authorized period expires.
The proposal also emphasizes the need for clear policy standards and congressional oversight in implementing the tax adjustment.
The bill states that it is the policy of the State to protect consumers and maintain economic stability during periods of extraordinary increases in petroleum prices while preserving the government’s fiscal integrity.
“By providing a flexible but carefully regulated policy tool, this measure aims to cushion Filipino consumers and the national economy from the immediate impact of sharp petroleum price increases during global crises,” Baronda said.
The measure highlights the Philippines’ heavy dependence on imported fuel, which exposes the country to fluctuations in global oil markets. Any significant increase in crude oil prices abroad quickly affects domestic fuel costs, transportation fares, electricity generation, and the price of essential commodities.
Economic analysts have long pointed out that sudden spikes in fuel prices often trigger inflationary pressures that affect both businesses and households.
For transportation operators, higher fuel costs can translate to increased operating expenses, while power producers may also face higher generation costs.
These increases often cascade through the economy, resulting in higher prices of goods and services, particularly basic commodities that rely on transportation and logistics.
Baronda said the proposed legislation intends to provide the National Government with a responsive policy mechanism during extraordinary circumstances without permanently altering the existing tax structure.
The measure also ensures that any adjustment to petroleum excise taxes will remain temporary and conditional, subject to strict limitations and monitoring.
Under the proposal, Congress retains oversight over the implementation of the authority granted to the President, including mandatory reporting requirements to ensure transparency and accountability.
Baronda expressed hope that the proposed law would provide the government with a practical tool to address economic disruptions caused by global crises while protecting Filipino consumers.
“In view of the foregoing, the approval of this measure is earnestly sought,” Baronda said in the explanatory note accompanying the bill.
If enacted into law, the Emergency Petroleum Excise Tax Adjustment Act will amend the provisions of the National Internal Revenue Code to allow the government to temporarily intervene in fuel taxation policies during extraordinary global events affecting oil prices.
The proposal is expected to undergo deliberation in the House of Representatives as lawmakers study its potential economic impact and fiscal implications.
Supporters of the measure say it could help stabilize domestic fuel prices during global crises, while ensuring that the government retains the ability to restore the excise tax system once market conditions normalize.
The bill underscores the continuing challenge faced by fuel-importing countries like the Philippines in managing economic stability amid volatile global energy markets. (Leo Solinap)