Gatchalian Seeks Temporary Suspension of Fuel Excise Tax Amid Rising Oil Prices

Senate President Sherwin Gatchalian is calling for the suspension of fuel excise tax due to continuous oil price hikes. He believes that the increasing cost of diesel and gasoline, used by logistics companies, is being passed on to consumers through higher food prices.

Gatchalian notes that even before, his office had proposed suspending the excise tax on gasoline to help reduce prices and prevent costs from being transferred to other basic commodities. He also points out that oil prices have risen above $80 a barrel again, providing sufficient reason to suspend the tax.

Earlier this year, President Ferdinand Marcos Jr. ordered the suspension of excise tax on liquefied petroleum gas (LPG) and kerosene through Executive Order No. 125, citing soaring global crude oil prices. Under Republic Act 12316, the suspension or reduction of the excise tax rate may be implemented for up to three months if the average price of Dubai crude oil reaches or exceeds $80 per barrel.