Gatchalian renews push to suspend gasoline and diesel excise tax
The Philippine Senate president proposed targeted fuel subsidies for public utility vehicle drivers if a tax suspension is not feasible.
Philippine Senate President Sherwin Gatchalian urged the government on October 30, 2026 to suspend excise taxes on gasoline and diesel, saying the move would temporarily ease pressure on public utility vehicle drivers facing high fuel costs.
Speaking to Super Radyo dzBB, Gatchalian said his calculations put the average world petroleum price over the preceding 30 days at US$103 per barrel. He argued that excise taxes should be suspended once prices exceed US$80 per barrel, and said relief would benefit both drivers and commuters.
If concerns about revenue collection prevent a suspension, Gatchalian said the government should offer targeted fuel subsidies instead, allowing drivers to receive assistance directly.
President Ferdinand “Bongbong” Marcos Jr. signed Republic Act No. 12316 in March. The law grants him emergency authority to suspend or lower fuel excise tax rates when the monthly average Dubai crude price, based on the Mean of Platts Singapore (MOPS), reaches or exceeds US$80 per barrel. Any suspension or reduction can last no longer than three months.
Separately, an oil industry source said gasoline prices were expected to rise by ₱2.90 to ₱3.20 per litre, while diesel prices were expected to fall by ₱0.40 to ₱0.60 per litre. The estimates used four days of MOPS trading data and foreign exchange averages.
