Fuel tax relief, Biofuels Act amendment bills reach Senate plenary

By Wilnard Bacelonia, Philippine News Agency

(Senate of the Philippines/facebook)

MANILA – Measures aimed at cushioning the impact of rising global oil prices on Filipino consumers reached the Senate plenary on Monday as lawmakers sponsored proposals allowing temporary fuel tax relief and amendments to the Biofuels Act of 2006.

Senator Pia Cayetano sponsored Senate Bill No. 1982, which seeks to allow the temporary suspension or reduction of excise taxes on petroleum products during periods of extraordinary increases in global oil prices.

Cayetano said the Philippines remains vulnerable to global supply disruptions, noting that about 98 percent of the country’s petroleum supply comes from West Asia, making domestic fuel prices sensitive to geopolitical tensions.

“When fuel prices increase, the effects ripple across the entire economy. Transportation costs rise, the movement of goods becomes more expensive, and ultimately it is Filipino families who feel the greatest burden through higher prices of food and other basic commodities,” Cayetano said.

She noted that global gasoline prices recently surged to USD90.32 per barrel, prompting domestic price adjustments that have added pressure on Filipino households.

Under the proposal, the President may suspend or reduce excise taxes on petroleum products upon recommendation of the Development Budget Coordination Committee once the average Dubai crude oil price reaches or exceeds USD80 per barrel for one month.

The excise tax suspension would automatically be lifted once global prices fall below the threshold, ensuring the measure remains temporary and targeted.

Senator Joel Villanueva manifested his co-sponsorship of the measure, saying the bill provides a mechanism for government to respond quickly during periods of sharp oil price spikes.

“Kapag mahal ang langis, mahal ang pamumuhay, at ang pinaka-apektado ay ang ordinaryong Pilipino (When oil becomes expensive, the cost of living also rises, and ordinary Filipinos are the most affected),” Villanueva said.

Senator Erwin Tulfo also expressed support for the measure, saying rising fuel prices quickly translate into higher costs for commuters and consumers.

“Kapag tumaas ang presyo ng diesel at gasolina, tumataas din po ang pamasahe, tumataas ang gastos sa transportasyon ng mga pagkain, at bandang huli, tumataas ang presyo ng mga bilihin sa merkado (When diesel and gasoline prices increase, fares also rise, the cost of transporting food goes up, and eventually the prices of goods in the market increase),” Tulfo said.

Meanwhile, Cayetano also sponsored Senate Bill No. 1965, which seeks to amend Section 5 of Republic Act No. 9367, or the Biofuels Act of 2006, to provide flexibility in implementing mandatory biofuel blending requirements during periods of high fuel prices.

The measure would allow the President, upon recommendation of the National Biofuels Board and the Department of Energy, to temporarily suspend the mandatory use of locally sourced biofuel components when blended fuel prices are at least 5 percent higher than pure gasoline or diesel as a result of the blending requirement.

Cayetano said the amendment seeks to balance consumer protection and long-term energy security.

“We must create policies that not only provide relief in the present, but also lay the groundwork for a more stable, diversified, and independent energy system for the Philippines in the years to come,” she said.

This is after an all-member caucus was held by senators on Monday afternoon to discuss the two proposed measures, which were certified as urgent by President Ferdinand R. Marcos Jr.