Iza Aldana
Mar 7, 2026
Bill proposes automatic tax suspension once global oil hits set threshold
Senators Alan Peter Cayetano and Pia Cayetano have filed a measure seeking to protect Filipino households from surging fuel prices by allowing the automatic suspension or reduction of excise taxes on petroleum products during periods of global oil price spikes.
The proposal calls for amendments to provisions of Republic Act No. 10963 to establish a clearer mechanism that would enable the government to respond swiftly when international oil prices rise sharply.
Under the measure, the President would be authorized to immediately suspend or reduce excise taxes on gasoline, diesel, and other petroleum products through an executive order once the price of Dubai crude oil reaches a predetermined threshold.
According to the lawmakers, the proposal aims to provide immediate relief to motorists and commuters while helping stabilize the prices of basic goods and services that are often affected by fuel costs.
“The government must have a responsive mechanism to cushion Filipino families from the impact of global oil shocks,” the lawmakers said, emphasizing that rising fuel prices directly affect transportation fares, food costs, and other household expenses.
If enacted, the measure is expected to strengthen the government’s ability to address sudden volatility in the global energy market while providing economic protection to communities already grappling with inflation and rising living costs.
The Cayetano siblings said the proposal is part of broader efforts to ensure that economic policies remain responsive to the everyday challenges faced by Filipino families.