President Ferdinand Marcos Jr. signed Republic Act 12316, allowing the government to suspend or reduce fuel excise taxes when global oil prices spike.
The tax cut kicks in once Dubai crude hits $80 per barrel for one month, upon recommendation of the Development Budget Coordination Committee and in coordination with the Energy chief.
“The power of the President to temporarily suspend or reduce the excise tax… shall be exercised only until December 31, 2028,” the law stated.
Cuts can last up to 3 months at a time, with a total cap of one year, and will automatically revert once prices drop.
Government must also report to Congress, while oil firms are required to submit monthly price data to the Department of Energy.IMT
