Marcos certifies as urgent bill allowing fuel tax suspension, cuts
President Marcos Jr. has certified as urgent a bill allowing him to suspend or reduce excise taxes on petroleum products during economic emergencies, a move aimed at addressing rising fuel prices driven by Middle East tensions.
President Ferdinand Marcos Jr. has certified as urgent a bill that would grant him authority to suspend or reduce fuel excise taxes in the Philippines during economic emergencies. The House of Representatives approved House Bill 8418 on second reading via voice vote on March 11, 2026, which amends Section 148 of the National Internal Revenue Code to allow the President to suspend or reduce excise taxes on petroleum products. The bill consolidates 15 related proposals, including those from Speaker Faustino 'Bojie' Dy III and Majority Leader Ferdinand Alexander 'Sandro' Marcos.
The legislation permits the President to suspend or reduce fuel excise taxes for up to six months under specific conditions: when Dubai crude oil prices reach or exceed $80 per barrel for a continuous period (sources vary between one to three months), or when the President declares a national or global economic emergency resulting in significant fuel price increases. The Department of Energy Secretary must certify the price increases based on recommendations from the Development Budget Coordination Committee and the Department of Energy. Currently, excise taxes stand at P10 per liter for gasoline and P6 per liter for diesel.
Malacañang indicated that Marcos intends to classify the measure as urgent, which would allow Congress to bypass the requirement for separate bill readings on different days, enabling approval on both second and third readings within the same day. The House Ways and Means Committee, chaired by Marikina Rep. Miro Quimbo, approved the substitute bill on March 10, 2026, before it advanced to the full House. The authority granted under the bill would remain valid until December 31, 2028.
The urgency reflects renewed volatility in global oil markets due to geopolitical tensions in the Middle East, particularly U.S.-Israel actions against Iran and retaliatory strikes, which threaten to disrupt supply and push fuel prices higher. The Department of Energy has expressed support for the measure, noting that a two-month suspension of the fuel excise tax could reduce diesel prices and provide relief to motorists, transport operators, and businesses. As of March 9, 2026, Dubai crude had already breached $100 per barrel, raising concerns about higher fuel costs in the Philippines and other oil-importing countries.
However, the Department of Finance has raised concerns about potential revenue losses, estimating that eliminating fuel excise taxes could result in P136 billion in lost revenue for 2026. The Senate is also considering related legislation, with Bill No. 1935 proposing automatic suspension of VAT and excise taxes on specified fuel when crude oil prices exceed $80 per barrel, which was accepted for consideration on March 5, 2026. The House bill now advances to third reading or Senate consideration, with the presidential certification of urgency expected to expedite the legislative process.
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