Senate approves bill allowing PBBM to cut fuel excise tax

Bill certified as urgent by PBBM to suspend/cut fuel excise tax gets immediate Senate approval

Motorists may soon get some relief at the fuel pumps after the Philippine Senate recently approved a bill that will allow President Ferdinand “Bong Bong” Marcos Jr. to suspend or reduce the excise tax on fuel products amid the ongoing crisis caused by the Middle East tensions.

Based on Senate Bill No. 1982, the bill authorizes the President to temporarily cancel or reduce the excise tax on petroleum products when the average price based on the Mean of Platts Singapore (MOPS) reaches or exceeds USD 80 per barrel. The temporary suspension of the excise tax on fuels can last for one month, provided that the issuance of the suspension or reduction order.

With the bill certified as urgent by the President himself, the Senate skipped the standard three-day rule and proceeded with the approval on the third & final reading immediately.

This is slightly different from House Bill No. 8418 by Congress, which was already approved on the third and final reading. Here, the suspension or reduction of the excise tax on fuel products will only be approved if the President declares a state of national emergency or calamity to justify the decision

The Senate hopes that the temporary reduction or suspension of the fuel excise tax will help motorists ease the burden of high fuel prices that are currently being experienced. The Senate also hopes that the Lower House adopts the Senate’s version as soon as possible to ratify the bill immediately.

With some diesel prices now exceeding PHP 100, the temporary suspension of the excise tax on fuel could help provide some temporary relief to motorists who have been experiencing double-digit fuel price spikes for the past couple of weeks. 

The only question now is, will Congress and the Senate agree on the said bill in order for President Marcos Jr. to sign it into law?