CIBAC Party-List Representative Bro. Eddie Villanueva is pushing for the passage of House Bill No. 8261, a measure that would allow the temporary suspension of excise taxes on gasoline and diesel once global crude oil prices reach USD 80 per barrel.
The bill amends Section 148 of the National Internal Revenue Code to establish a trigger-based mechanism tied to the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS) or other internationally recognized benchmarks.
Rep. Villanueva said the measure comes amid renewed volatility in global oil markets driven by geopolitical tensions and threats to key shipping routes, developments that have already led to domestic pump price hikes and inflationary pressure.
“The purpose of this bill is to provide a fiscal tool and mechanism that allows for the temporary suspension or reduction of excise taxes when global crude price benchmarks reach levels that pose significant inflationary risk to the Philippine economy,” he said.
He stressed that the proposal does not mandate automatic tax removal. Any recommendation must be based on inflationary pressures, consumer price impact, fiscal position and revenue implications, macroeconomic stability, and the presence of extraordinary geopolitical or supply disruptions.
The measure also provides that any suspension or reduction must specify its duration and will automatically lift once average Dubai crude prices fall below USD 80 per barrel for at least 30 consecutive days. The Department of Finance is required to submit a report to Congress detailing the economic and fiscal basis for its recommendation.
“This approach aligns public fiscal policy with real-world market conditions, protecting consumers and the broader economy from rapid fuel price inflation while preserving the State’s ability to safeguard revenue and macroeconomic stability,” Rep. Villanueva ended
