Senate approves fuel tax relief bill

By Wilnard Bacelonia, Philippine News Agency

FUEL PRICE HIKE. A motorist fills up at a gas station in Barangay Dumoy, Talomo District, Davao City on Wednesday (March 4, 2026) as fuel prices rise nationwide. Current pump prices in the area are PHP55.95 per liter for diesel, PHP54.85 for regular gasoline, and PHP54.95 for premium. (PNA photo by Robinson Niñal Jr.)

MANILA – The Senate approved on Tuesday a measure granting the President authority to suspend excise taxes on petroleum products, amid rising global oil prices.

Senate Bill No. 1982 was approved with 17 affirmative votes, zero negative, and zero abstentions.

Sponsor Senator Pia Cayetano said the measure underwent extensive discussions, including caucuses and hearings, to ensure safeguards are in place for consumers.

“Not just because it’s a certified measure, eh minadali po natin… we want to assure the public that we have taken time to really assess this… to ensure that the intended outcome for this bill eh talagang makinabang yung kababayan natin (we did not rush this just because it is certified… we want to ensure Filipinos will truly benefit),” Cayetano said.

She noted that provisions were strengthened, particularly on reportorial requirements for oil companies, to ensure that reductions in taxes translate to lower pump prices.

Senator Sherwin Gatchalian, in his explanation of the vote, acknowledged the fiscal impact of the measure but said the government must act to ease the burden on consumers.

“Itong pagsuspinde ng excise tax ay hindi madali… tinataya pong PHP135 billion ang pwedeng mawala sa atin kung eight months po isususpinde… kaya ang gobyerno po, tayong lahat ay nagsasakripisyo para matulungan yung ating mga kababayan (Suspending the excise tax is not easy… we could lose PHP135 billion if it is suspended for eight months… but the government is making sacrifices to help our people),” he said.

He stressed that oil companies should also do their part and ensure that price reductions are passed on to consumers.

Senator Risa Hontiveros, who voted in favor of the measure, said it would provide short-term relief but emphasized the need for complementary interventions.

“Yes sa agarang ginhawa, pero may panawagan para sa mas malalim at mas epektibong solusyon (Yes to immediate relief, but with a call for deeper and more effective solutions),” Hontiveros said.

She said the tax suspension should be paired with a supplemental budget and direct subsidies for affected sectors such as transport workers, farmers, and fisherfolk.

Hontiveros also cautioned against potential revenue losses that could affect funding for social services, including health and education.

Faster trigger for fuel tax suspension

Meanwhile, Senate President Pro Tempore Panfilo “Ping” Lacson pushed for a shorter period to trigger the suspension or restoration of excise taxes, suggesting a two-week averaging period for global oil prices.

“Ang two weeks na matitipid mo sa pagkarga ng gas, malaking bagay yan (Two weeks of savings on fuel is a big deal),” Lacson said, citing the need for quicker relief amid “extraordinary” global conditions.

He also stressed the importance of balancing revenue losses, noting that foregone revenues from the suspension could reach at least PHP136 billion in 2026.