MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. has signed into law Republic Act No. 12316, granting the executive branch the authority to suspend or reduce excise taxes on fuel when global oil prices surge.

Signed on March 25, 2026, the measure allows the President to act once the one-month average price of Dubai crude oil reaches at least $80 per barrel—a benchmark commonly used to track global oil trends affecting the Philippines.

The law, endorsed by Senator Pia S. Cayetano, aims to cushion the impact of rising fuel costs on consumers, particularly transport workers and households already grappling with inflation.

Under the new policy, any suspension or reduction of excise taxes will be temporary and subject to strict safeguards. These include defined time limits, automatic reversion to previous tax rates once oil prices stabilize, and mandatory reporting to Congress to ensure transparency and accountability in implementation.

Lawmakers said the measure provides the government with a “targeted and responsive tool” to address volatile fuel prices without permanently altering the country’s tax structure.

The enactment comes as global oil markets remain unpredictable, with price fluctuations driven by geopolitical tensions and supply constraints, raising concerns over their impact on domestic fuel prices and the broader economy.

📷 Presidential Communications Office FB