Philippines: President seeks emergency powers to cut oil excise taxes as prices spike amid Middle East war

Manila: President Ferdinand Marcos Jr. has sought emergency powers from Congress that would allow him to cut excise taxes on petroleum products to cushion the massive spike in oil prices.

Global oil prices have spiked amid escalating tensions in the Middle following unprecedented US-Israeli attacks and Iran's blatant aggression against its Gulf neighbours, including the closure of the Strait of Hormuz.

"The prices of oil have already gone upwards," President Marcos Jr told local media on Tuesday.

"First of all, let me assure everyone that we have a sufficient supply of oil. We have stocks approximately good for 50 to 60 days, in terms of gasoline, fuel, oil, kerosene. Let me immediately allay the fears of everyone that our supply of our suplply of oil-derived prodcts, even fertilisers, are sufficient."

Marcos Jr also outlined the following stockpiles of fossil fuel-derived products in the Philippines:

"We’re OK for that period of time. To further provide or supply these fuel products, our providers also have stockpiles, that’s another potential supply for us,” the president said during an unscheduled briefing at Malacañang on Tuesday.

Marcos revealed he is in discussions with leaders of both chambers of Congress about granting him temporary authority to reduce excise taxes on fuel if crude breaches the $80-per-barrel threshold.

The President did not specify how deep the potential tax cut would be but stressed that the measure would be strictly temporary.

“I will discuss it with the leadership of Congress to see… it is going to be an emergency measure,” Marcos said. “It is not going to be a permanent measure. It will be something that we will dispose of as soon as the crisis is over.”

The proposal forms part of the administration’s contingency plan to shield Filipino consumers and businesses from a possible spike in fuel prices that could ripple through transportation, food costs, and electricity rates.

Under the Tax Reform for Acceleration and Inclusion Law, or TRAIN Law, excise taxes on petroleum products are automatically suspended if the average global oil price reaches $80 per barrel for three consecutive months.

However, the President’s proposal would allow the government to act more swiftly, without waiting for the three-month trigger period.

Energy analysts have warned that prolonged instability in the Middle East could tighten global supply and drive crude prices sharply higher, placing renewed inflationary pressure on oil-importing countries like the Philippines.

Marcos said the government is closely monitoring developments abroad and is prepared to intervene to prevent fuel price shocks from undermining the country’s economic recovery.