Soaring oil prices put fuel tax relief back on the table

Floyd Brenz., Philippine Canadian Inquirer
September 11, 2026

Photo Courtesy: BusinessWorld

PHILIPPINES – With global crude oil prices breaking past USD100 per barrel, relief at the pump could soon be on the table for Filipino consumers.

The Department of Finance is waiting for the Department of Energy to certify that Dubai crude has breached the USD80 per barrel threshold required by law before excise taxes on certain fuel products can be suspended.

Finance Secretary Frederick Go is prepared to recommend to the Development Budget Coordination Committee the full suspension of excise taxes on liquefied petroleum gas and kerosene for the President’s approval once the certification is issued.

The possible tax relief comes as rising international oil prices have already pushed domestic fuel costs sharply higher. This week alone, kerosene increased by PHP5.58 per liter, gasoline by PHP4.69 and diesel by PHP5.18.

Gasoline and diesel prices are now ranging from around PHP80 to PHP100 per liter, putting additional pressure on motorists, transport workers and households already dealing with higher living costs.

The government has used the same mechanism before. In April, President Ferdinand Marcos Jr. temporarily suspended excise taxes on several petroleum products after Dubai crude reached around USD93.71 per barrel amid the Middle East crisis.

Under Republic Act 12316, the President may suspend or reduce fuel excise taxes for up to three months once the required Dubai crude price threshold is reached.

While the Department of Energy says domestic fuel supply remains adequate, the sharp increase in global prices is already being felt locally.

With oil prices climbing beyond USD100 per barrel, fuel tax relief is once again emerging as a possible government response to rising costs at the pump.