MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. has adopted a cautious “wait-and-see” approach regarding the growing calls to suspend or cut the excise tax on fuel. As global oil prices continue to fluctuate due to geopolitical tensions, the President emphasized that any decision to reduce taxes must be data-driven and balanced against the government’s fiscal requirements for essential public services and infrastructure projects.
The statement comes as transport groups and various consumer sectors ramp up pressure on the administration to provide more substantial relief from the “diesel double whammy” that has hit the country since the start of the year. While some lawmakers have proposed a temporary suspension of the excise tax under the TRAIN Law, the Executive Branch remains wary of the potential multi-billion peso loss in national revenue.
“We are monitoring the situation very closely,” President Marcos said during a press briefing. “Cutting the excise tax is a tool we have in our kit, but it is not one we can use lightly. We have to see where the trends are going. If the high prices are sustained and begin to severely cripple our transport and agriculture sectors, then all options—including tax adjustments—will be on the table.”
The President outlined the government’s current priorities in managing the energy crisis:
- Trend Analysis: Economic managers are tasking the Department of Energy (DOE) and the Department of Finance (DOF) to project whether the current spike is a short-term “hiccup” or a long-term structural shift in the global market.
- Targeted vs. Broad Relief: The administration currently favors Targeted Fuel Subsidies (Pantawid Pasada) for PUV drivers over a broad tax cut, arguing that subsidies ensure help reaches those who need it most without benefiting high-income private vehicle owners.
- Fiscal Responsibility: A suspension of fuel excise taxes could result in an estimated ₱10 billion to ₱15 billion monthly loss in revenue, which officials say is currently earmarked for the “Build Better More” program and social health initiatives.
Despite the cautious stance, the President acknowledged the “real pain” being felt by Filipino families. He noted that the government is also exploring non-tax interventions, such as increasing the frequency of fuel subsidy tranches and working with oil companies to establish more “socialized pricing” for public utility vehicles at participating stations.
Opposition lawmakers and labor leaders have criticized the “wait-and-see” remark, arguing that for the millions of Filipinos living below the poverty line, the “trend” of hardship is already clear. They continue to push for the immediate trigger of the “suspension clause” in the tax law, which was originally designed to activate when oil prices hit a certain threshold.
As the second quarter of 2026 approaches, the Malacañang economic team is expected to release a comprehensive “Energy Security and Inflation Mitigation” report, which will likely determine whether the administration finally pulls the trigger on tax relief or maintains its current subsidy-focused strategy.