MANILA – President Ferdinand R. Marcos Jr. said Tuesday, March 3 he may seek emergency powers from Congress to reduce excise taxes on petroleum products if Dubai crude prices exceed USD80 per barrel amid the ongoing Middle East crisis, a move that has already drawn legislative action from at least two senators.

Speaking at a press conference in Malacañan Palace, Marcos said the proposal is still under deliberation and not yet finalized.

"There is also a proposal that we will examine further. I am going to talk to the leaders in both the House and in the Senate," Marcos said.

"This is something that we are discussing and it could be helpful – to give me, the President, the authority to reduce excise tax on petroleum products, should Dubai crude exceed USD80 per barrel," he added.

Marcos stressed that any tax reduction would not be permanent. "It will be something that we will dispose of as soon as the crisis is over," he said.

Finance Secretary Frederick Go clarified that the contingency plan hinges on two conditions: the price of oil and how long it stays elevated. He noted that Dubai crude is currently trading between USD76 and USD78 per barrel.

"Even if it exceeds USD80 per barrel, doesn't mean we react right away. It also has to exist for a certain period of time. Kasi kung tumaas ang presyo ng 80, isang araw lang, bumaba naman next day ulit ng 77, ba't tayo magre-react," Go said.

Bills filed in the Senate

Ahead of any formal request from the executive, two senators have already filed measures aligned with the President's contingency plan.

Sen. Joel Villanueva filed Senate Bill No. 1922, which would authorize the President, upon recommendation from the Departments of Finance and Energy, to suspend or reduce excise taxes on gasoline and diesel once average prices reach or exceed USD80 per barrel based on the Mean of Platts Singapore (MOPS).

"In times of global uncertainty, our government must act with both compassion and prudence. The measure we filed today on the temporary lifting of excise tax on fuel seeks to strike that balance," Villanueva said.

"Fuel price spikes do not affect transportation alone. They cascade across the economy, increasing food prices, electricity costs, logistics expenses, and ultimately inflation. The burden is felt most heavily by ordinary Filipino families, public utility drivers, farmers, fisherfolk, and small businesses," he added.

Villanueva said his bill includes an automatic lifting of the suspension once global oil prices stabilize. "Our proposed mechanism also provides for the automatic lifting of such suspension once global oil prices stabilize, thereby preserving fiscal discipline and revenue predictability," he said.

Sen. Bam Aquino filed a companion measure, Senate Bill No. 1923, which similarly grants the President authority to suspend fuel excise taxes during national and global emergencies. Aquino cautioned that delayed or rigid responses could deepen economic hardships, particularly for low-income families.

"This will primarily affect our poor countrymen. Especially since the cost of goods increases when the price of petroleum products increases," Aquino said. "When the price of crude oil increases, the price of goods will increase. The ordinary Filipino will suffer again," he stressed.

Sufficient supply, other safeguards in place

Marcos assured the public that the country's oil stockpiles are sufficient, with reserves ranging from 29 to 67.5 days depending on the product. Diesel stands at 50.5 days, gasoline and fuel oil at 51.5 days each, jet fuel at 58 days, kerosene at 67.5 days, and liquefied petroleum gas at 29 days.

Should prices range between USD80 and USD90 per barrel for two months, the government is considering targeted fuel subsidies for the transport and agricultural sectors, including fisherfolk. Possible measures also include free bus rides on major routes, stable public transport fares, and staggered price adjustments coordinated with oil companies.

Marcos also noted the importance of gradual price adjustments. "Para hindi naman bigla-biglang tataas ang presyo ng petroleum products ng langis. Ito ang mga produkto na ginagamit ng taumbayan ay dahan-dahan lang paakyatin," he said.

Broad senate support

Beyond those who filed bills, other senators have also expressed backing for the proposal. Senate Majority Leader Juan Miguel Zubiri said the move would help shield consumers from rising costs.

"I am in favor of granting the president those powers to be able to lower the excise tax on fuel. That move will definitely help cushion the impacts on high fuel cost due to the ongoing conflict in the Middle East," Zubiri said.

Senator Erwin Tulfo echoed the sentiment. "Of course, susuportahan po namin… magkaroon ng automatic suspension ng excise tax kasi mabigat po 'yan," he said.

The Senate Foreign Relations Committee is scheduled to hold a hearing on Friday to discuss the proposed tax suspension and other contingency measures in response to the Middle East conflict.