SENATOR Bam Aquino reminded the government on Tuesday, March 3, 2026, that the Tax Reform for Acceleration and Inclusion (Train) Law provides for the automatic suspension of excise taxes on petroleum products once global oil prices breach $80 per barrel.
Aquino said the safeguard mechanism under the Train Law, which he pushed during deliberations, allows the automatic suspension of excise tax collection on fuel products if the average price of oil in the world market reaches $80 per barrel over a three-month period.
“In the safeguard that we pushed under the Train Law, the automatic suspension of excise tax collection on oil is allowed once the price of oil in the world market exceeds $80 per barrel,” Aquino said.
Local oil companies earlier announced that gasoline and diesel prices are set to increase by P1.90 and P1.20 per liter, respectively, on Tuesday, March 3, adding pressure on consumers already grappling with rising costs of living.
Aquino said the suspension of excise taxes would help cushion the impact of the expected fuel price hikes, especially amid tensions in the Middle East that have driven up global oil prices.
“This suspension will help reduce the burden of the anticipated increase in oil prices due to the conflict in the Middle East,” he said.
The senator warned that higher oil prices could trigger a domino effect, pushing up the cost of food and other basic goods and further straining Filipino households. He is expected to file a resolution urging the government to implement the tax suspension if the threshold is met.
During the 20th Congress, Aquino filed Senate Bill 265, which seeks to abolish the excise taxes imposed under the Train Law on diesel, kerosene, liquefied petroleum gas (LPG), fuel oil and unleaded gasoline.
“These taxes have contributed to higher fuel prices, which in turn cascade into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos,” Aquino said.
If enacted into law, Aquino said the measure would provide immediate relief to commuters and drivers, particularly those operating diesel-powered jeepneys, buses and delivery vehicles.
He added that it would also lower household expenses for cooking fuel and lighting, especially in poor and off-grid communities, and ease the burden on producers and small businesses by reducing fuel and logistics costs.
“It will also help stabilize the prices of basic goods and services amid persistent inflationary pressures,” Aquino said.
Aside from the proposed removal of excise taxes on petroleum products, Aquino is also championing other measures aimed at cushioning the impact of the high cost of living, including a bill seeking to remove the 12 percent value-added tax on electricity and another measure proposing institutionalized subsidies for commuters and students. (ABC)