Manila: The House Committee on Ways and Means has approved a bill permitting President Ferdinand R. Marcos Jr. to suspend or reduce excise tax on fuel in response to ongoing tensions in the Middle East. This legislative move comes as part of efforts to address potential economic impacts resulting from fluctuations in global oil prices.

According to Philippines News Agency, the substitute bill grants the President the authority to lower excise taxes on fuel products when the average price of Dubai crude oil surpasses USD80 per barrel for a month prior to the tax adjustment. The suspension of the fuel tax is capped at a six-month duration and the President's additional authority is set to expire on December 31, 2028.

Leyte Representative Ferdinand Martin Romualdez expressed approval for the bill, highlighting its significance in providing the President with the necessary flexibility to navigate the oil crisis and price volatility. Romualdez emphasized the potential relief this measure could offer to the public, particularly the economically disadvantaged, by reducing retail fuel prices by PHP6 to PHP10 per liter.

Romualdez's House Bill No. 5779 was among 15 bills and two joint resolutions reviewed by the House Committee on Ways and Means. While advocating for the permanent removal of excise taxes on oil products, Romualdez acknowledged the government's reliance on excise tax revenues for essential social services.

Additionally, Romualdez urged oil companies to disclose their inventory levels on which excise taxes have already been paid, following statements from oil company representatives about needing to deplete existing taxed stocks before implementing retail price reductions. He stressed the importance of transparency in guiding consumers about which fuel stocks would be sold with or without excise taxes.

Bicol Saro Party-list Representative Terry Ridon described the bill as a timely response by Congress to the increasing instability in global oil markets. Ridon, who chairs the House Committee on Public Accounts, underscored the necessity for the Philippine government to possess the tools needed to swiftly protect consumers from rising fuel prices due to international tensions in petroleum-producing regions.