Palace: Excise tax cut, suspension to apply only to new fuel imports

EXCISE TAX. A female worker refuels a vehicle at a gasoline station along Tomas Morato Avenue in Quezon City on Monday (March 30, 2026). Malacañang on Wednesday (April 1) clarified that the possible suspension or reduction of oil excise tax will be imposed only on incoming fuel shipments and not on the current inventory. (Photo courtesy: Robert Oswald P. Alfiler / PNA)

By Ruth Abbey Gita-Carlos | Philippine News Agency

Any reduction or suspension of excise tax on petroleum products will apply only to incoming fuel shipments and not to existing inventory, Malacañang clarified on Wednesday.

“Gusto lang nating liwanagin ito. Itong pagpataw or pag-reduce, pagtanggal, pag-suspend ng excise tax, ito po ay para sa bagong parating na bagong supply ng fuel,” Palace Press Officer Claire Castro said in a radio interview.

Castro made the clarification, as she noted that Republic Act (RA) 12316, signed by President Ferdinand R. Marcos Jr. on March 25, will take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.

RA 12316 grants the President emergency powers to temporarily suspend or reduce excise tax on petroleum products in response to rising global oil prices due to the Middle East conflict.

Castro said that current inventory held by oil companies will not be covered by the adjustment.

She explained that excise taxes are imposed upon the entry of fuel products, the reason why only new shipments will be affected.

“Hindi ‘yung inventory nila ngayon ‘yung papatawan, ‘yung sabihin na wala nang excise tax. Hindi po. Kung ano lang yung papasok, kasi upon entry iyan. Doon lamang nila mararamdaman kung dapat bang walang excise tax o na-reduce ang excise tax,” Usec. Castro said.

She, however, said there is no estimate yet on how much fuel prices may decrease, as global oil prices remain volatile.

She added that the government is still computing possible adjustments and monitoring trends in crude oil prices.

Emergency powers may be used if global oil prices reach US$80 per barrel for 30 consecutive days, Usec. Castro said.

“Kailangan lamang nilang i-compute kasi sabi nga natin ang presyo ng krudo is pabago-bago sa ngayon. So, wala pa sa atin binibigay na specific kung paano ito gagawin, kung ilang porsyento ba or what,” she said.

“Dapat 30 days prior sa pag-announce yung presyo ng fuel ay US$80 per barrel for a month, nang tuloy-tuloy. ‘Pag let’s say biglang bumaba, naging US$79 or US$78, hindi siya agad magagamit. Hindi pwedeng i-reduce o i-suspend yung excise tax kasi bumaba yung presyo ng fuel,” she added. (PNA)

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