Manila: Speaker Faustino 'Bojie' Dy III announced that the House of Representatives has provided President Ferdinand R. Marcos Jr. with enhanced policy tools to mitigate fuel price shocks after passing two critical measures on their third and final reading. These measures aim to protect Filipinos from the volatility of the global oil market.
According to Philippines News Agency, the measures, House Bill (HB) Nos. 8418 and 8469, empower the President to temporarily suspend or reduce fuel excise taxes and suspend mandatory biofuel blending under the Biofuels Act of 2006. This initiative is designed to cushion the impact of global oil price surges amid ongoing tensions in the Middle East.
Speaker Dy stated, "These measures give our President stronger and more flexible tools to protect Filipinos from fuel price shocks," following the approval of the two bills. "When global oil prices surge, the government must act quickly to stabilize pump prices and shield families, commuters, and businesses from its ripple effects."
The House approved HB 8418 with 248 votes in favor, three against, and zero abstentions. This bill, principally authored by Dy and House Majority Leader Ferdinand Alexander 'Sandro' Marcos, allows the President to suspend or reduce excise taxes on petroleum products upon the recommendation of the Development Budget Coordination Committee, in coordination with the Department of Energy.
The authority to suspend or reduce excise taxes may be exercised if the average Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds USD80 per barrel for one month, or if a national emergency or calamity results in extraordinary increases in domestic fuel prices. Any suspension will be effective for up to six months and may be extended for a maximum aggregate period of one year, subject to congressional action. The authority granted to the President will remain in effect until Dec. 31, 2028.
"Ordinary Filipinos feel the impact immediately when global oil prices spike. This bill ensures the government has the flexibility to intervene and prevent runaway increases in pump prices and inflation," Dy added.
Meanwhile, the House also passed HB 8469 with 209 votes in favor, five against, and zero abstentions. This bill amends Section 5 of Republic Act 9367 or the Biofuels Act of 2006, allowing the President to temporarily suspend the mandatory biofuel blending requirement when blended fuel prices become at least 5 percent higher than pure gasoline or diesel, thereby helping ease pump prices.
Dy explained that the proposed amendment enables the government to respond to abnormal price movements in the global oil market without abandoning its long-term commitment to renewable energy. "We support renewable energy, but when blending requirements drive up pump prices, the government must act in the interest of consumers and the general public," the House chief noted.
Dy concluded that the passage of the two measures reflects the House's commitment to support President Marcos' efforts to safeguard the economy amid geopolitical tensions affecting global energy markets. "The goals of these twin measures are to protect the purchasing power of every Filipino household and ensure the stability of our economy. By giving the President these tools, we are strengthening the government's ability to keep fuel prices manageable during times of global uncertainty."
