MANILA — The Senate of the Philippines has approved Senate Bill No. 1982, a proposed measure that seeks to provide immediate relief to consumers by adjusting fuel taxes in response to rising global oil prices.

The bill, titled Automatic Suspension or Reduction of Excise Tax on Petroleum Products, introduces a mechanism that automatically reduces or suspends excise taxes on petroleum products when international crude oil prices hit a specified level.

Under the proposal, tax relief will be triggered once crude oil prices reach or exceed USD 80 per barrel for a sustained period of one month. The measure aims to cushion the impact of high fuel costs on transportation fares, production expenses, and the prices of essential goods.

Lawmakers said the bill is a response to the volatility of the global oil market, where geopolitical tensions and supply disruptions often lead to sudden price spikes. They added that fuel price increases have a direct effect on inflation, as they influence logistics, electricity generation, and overall cost of living.

Excise taxes on petroleum products were imposed under the Tax Reform for Acceleration and Inclusion Law, which took effect in 2018 and contributed additional revenue for government programs but also increased pump prices.

The proposed measure is designed to act as a safeguard, ensuring that tax adjustments happen automatically without requiring new legislation each time oil prices surge.

The bill will still undergo further legislative steps before it can be enacted into law. Once passed, it is expected to help stabilize fuel prices and protect consumers from sharp increases in everyday expenses.

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