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Philippines' Marcos signs emergency powers to cut oil taxes amid Middle East conflict
The power of the President to temporarily suspend or reduce the excise tax on petroleum products granted shall be exercised only until December 31, 2028
- PUBLISHED: Wed 25 Mar 2026, 5:58 PM
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Philippine President Ferdinand Marcos Jr. signed into law on Wednesday a measure granting him the power to suspend fuel excise taxes in response to seemingly runaway pump prices in the country.
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Marcos made official Republic Act No. 12316, which authorises the chief executive to suspend or reduce excise taxes on petroleum products as the country grapples with rising oil prices linked to the conflict in the Middle East that is now on its fourth week.
Under the measure, Marcos may act on the recommendation of the Development Budget Coordination Committee (DBCC) and in coordination with the Energy Secretary if the average Dubai crude oil price reaches or exceeds 80 US dollars per barrel for one month.
World crude prices breached the threshold two weeks ago. On Wednesday, Brent crude is trading around US$112 per barrel, while U.S. West Texas Intermediate (WTI) crude is trading approximately in the US$88-94 per barrel range.
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The law allows either a full suspension or partial reduction of excise taxes on specific petroleum products, effective for up to three months at a time, with extensions capped at one year.
Rates will automatically revert to normal once oil prices fall below 80 dollars per barrel or when the three‑month period lapses.
These emergency powers may only be exercised until December 31, 2028.
Marcos, however, earlier clarified he is still considering when to utilize his extra powers. If and when he does, this could mean a reduction of about P10 per litre for petrol and P6 per litre for diesel.
There is growing demand for the removal of value added tax as well, which could further reduce prices by as much as P15.
