PH grapples with Oil Price Surge: Gov't Mulls Fuel Tax Suspension Amid Hoarding Fears, Drivers Struggle
The Philippines faces severe fuel price hikes, with police monitoring gas stations for hoarding. The government considers suspending excise taxes, potentially sacrificing billions, as public transport drivers struggle and a House bill for tax suspension passes committee level.
The Philippines is facing its biggest fuel price hikes in history as of March 10, 2026, driven by Middle East tensions including Iran blocking the Strait of Hormuz, which supplies approximately 90% of Philippine crude imports. Gasoline prices rose by ₱7-13 per liter, diesel by ₱17-24 per liter, and kerosene by ₱32-38 per liter, with major oil companies implementing staggered increases over 3-5 days to ease the impact on consumers. The Philippines has been identified as among the "worst hit" countries by the oil price surge due to market-driven retail prices and limited government subsidies.
In response to the crisis, House Speaker Faustino "Bojie" Dy III and Majority Leader Sandro Marcos filed House Bill No. 8292 on March 9, 2026, seeking to grant President Ferdinand Marcos Jr. emergency powers to suspend or reduce fuel excise taxes during national emergencies. The bill would amend Section 148 of the National Internal Revenue Code, allowing suspension if Dubai crude oil averages $80 per barrel for three consecutive months or during declared emergencies causing sharp domestic fuel price hikes. The suspension could reduce prices by ₱6 per liter for diesel and ₱10 per liter for gasoline, but would potentially cost the government ₱136 billion in lost revenues if implemented from May to December 2026.
The Philippine National Police (PNP) has been actively monitoring gas stations nationwide to prevent fuel hoarding and price manipulation. PNP Chief Jose Melencio Nartatez Jr. announced on March 9, 2026, that police units have been ordered to include gasoline stations in routine patrols and will arrest anyone found illegally withholding fuel supplies. The Department of Energy (DOE) has issued show cause orders against 54 gas stations for allegedly implementing price increases before the official announcement date and taking advantage of the crisis.
President Marcos confirmed on March 9 that he will request emergency powers to address the fuel crisis, while the House Ways and Means Committee held hearings on March 10 to consider multiple bills granting presidential authority over fuel taxes. The government faces a difficult balancing act between providing relief to consumers and protecting national revenue, with the Department of Finance warning that tax suspension could significantly impact economic growth and government programs. Public transport drivers and vulnerable sectors are particularly affected, prompting urgent legislative action amid ongoing Middle East tensions affecting global oil supplies.
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