Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 26 MAR -4 P2:03 First Regular Session SENATE RECEIVED BY: S. B. No. 1927 Introduced by Senators PIA S. CAYETANO and ALAN PETER "COMPAÑERO" S. CAYETANO AN ACT ALLOWING THE AUTOMATIC SUSPENSION OR REDUCTION OF EXCISE TAX ON FUELS AMENDING FOR THE PURPOSE ARTICLE 148 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED EXPLANATORY NOTE Recent conflicts in West Asia have intensified risks in global oil markets. The region is home to major oil-producing countries such as Saudi Arabia, Iran, Iraq, Kuwait, Qatar, and the United Arab Emirates, which collectively account for a significant share of global crude exports. Consequently, escalating strikes and retaliatory attacks in the area pose significant risks to the stability of one of the world's most critical energy supply hubs. The Philippines remains heavily dependent on imported oil and petroleum products to meet its energy and economic needs, making the country vulnerable to global supply disruptions and international price volatility. In 2024 alone, the country imported approximately 340,600 barrels of liquid fuel, accounting for about 99.68% of total petroleum supply. I The impact of the ongoing conflict in West Asia is immediate. In just three days following these global developments, gasoline prices in the international market already surged from USD 79.63 to USD 90.32 per barrel, signaling upward pressure 1 Presidential Communications Office. (2025, October 8). PBBM: $200M new foreign investments in petroleum exploration to boost PH energy security, jobs creation. https://pco.gov.ph/news_releases/pbbm-200m-new-foreign-investments-in-petroleum-exploration-to- boost-ph-energy-security-jobs-creation/
on domestic fuel prices.? Consequently, major fuel retailers in the country implemented price adjustments, raising gasoline by about PHP 1.90 per liter, diesel by PHP 1.20 per liter, and kerosene by PHP 1.50 per liter. 3 These developments demonstrate the need for a responsive mechanism that authorizes the suspension of excise taxes on fuel whenever extraordinary events or external shocks significantly disrupt global oil prices. Establishing such a safeguard will enable the government to act swiftly in mitigating the inflationary impact of future price surges and protect consumers from undue economic burden.
Section 148 of National Internal Revenue Code of 1997, as amended by
Republic Act No. 10963 or the "Tax Reform for Acceleration and Inclusion (TRAIN) Act", limited the President's authority to suspend scheduled fuel excise tax increases from 2018 to 2020. At present, there is no law which expressly grants the President continuing authority to suspend the imposition of fuel excise taxes in times of extraordinary circumstances. Thus, this proposed measure grants the President the authority to suspend or reduce excise taxes on fuels once global oil prices reach a certain threshold. It ensures timely relief for consumers and stability in the domestic fuel market. By providing these safeguards into our tax system, the government can respond immediately without the need of prior legislative action. In view of the foregoing, the immediate passage of this bill is earnestly sought. Pia S. Cantanoi PIA S. CAYE/TANO ALAN PETER CONFAÑERO" S. CATETANOE 2 Dizon, D. (2026, March 3). DOE warns of weekly oil price hikes as oil prices soar. ABS-CBN News. https://www.abs-cbn.com/news/business/2026/3/3/doe-warns-of-weekly-oil-price-hikes-as-oil-prices- soar-1020 3 Dizon, D. (2026, March 3). DOE warns of weekly oil price hikes as oil prices soar. ABS-CBN News. https://www.abs-cbn.com/news/business/2026/3/3/doe-warns-of-weekly-oil-price-hikes-as-oil-prices- soar-1020
Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) First Regular Session 26 MAR -4 P2:03 SENATE RECEIVED BY: S. B. No. 1927 Introduced by Senators PIA S. CAYETANO and ALAN PETER "COMPAÑERO" S. CAYETANO AN ACT ALLOWING THE AUTOMATIC SUSPENSION OR REDUCTION OF EXCISE TAX ON FUELS AMENDING FOR THE PURPOSE ARTICLE 148 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 148 of the National Internal Revenue Code (NIRC), as
amended, is hereby further amended to read as follows: XXX "NOTWITHSTANDING THE PROVISION ABOVE, THE PRESIDENT UPON THE RECOMMENDATION OF THE DEVELOPMENT BUDGET COORDINATION COMMITTEE, MAY SUSPEND OR REDUCE THE EXCISE TAXES ON FUEL THROUGH AN EXECUTIVE ORDER: PROVIDED, THAT THE AVERAGE DUBAI CRUDE OIL PRICE BASED ON MEAN OF PLATTS SINGAPORE (MOPS) FOR ONE (1) MONTH REACHES OR EXCEEDS EIGHTY DOLLARS (USD 80) PER BARREL: PROVIDED FURTHER, THAT THE SAID SUSPENSION OR REDUCTION OF EXCISE TAXES SHALL BE AUTOMATICALLY LIFTED WHEN THE ABOVE CONDITION IS NO LONGER PRESENT."
Sec. 2. Separability Clause. - If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall remain in force and effect.
Sec. 3. Repealing Clause. - Any law, presidential decree or issuance, executive
5 order, letter of instruction, rule or regulation inconsistent with the provisions of this 6 Act is hereby repealed or modified accordingly.
Sec. 4. Effectivity Clause. - This Act shall take effect after fifteen (15) days
8 following its complete publication in the Official Gazette or a newspaper of general 9 circulation. Approved,