60-day oil supply secured; tax cuts possible if prices hit $80 – Marcos

Metro Manila, Philippines – President Ferdinand Marcos Jr. said on Tuesday, March 3, that the country has an oil inventory that could last up to 60 days, while expressing support for cutting the excise tax on fuel if the import price hits $80 per barrel (bbl).

In a press briefing, Marcos assured the public that the country has enough fuel supply as the crisis deepens in the Middle East.

The current stock piles for oil products are:

• LPG –  29 days
• diesel – 50 and a half days
• fuel oil –  51 and a half days
• gasoline –  51 and a half days
• jet Fuel –  58 days
• kerosene –  67 and a half days

Proposed interventions 

Marcos is also seeking congressional authority to cut fuel taxes should Dubai crude breach $80/bbl. 

“And that – wala pa tayo doon. But if in case that happens, then maybe this is something that we will have to – this is one tool that we will have to have,” said Marcos. 

[Translation: We have not reached that point yet, but if it happens, cutting taxes is one tool that we will have to have.]

“So, I will discuss it with the leadership of Congress and to see if it’s going to be an emergency measure. 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,” he said.

The government is also looking at fuel subsidies for the transport and agriculture sectors, as well as fisherfolk.

“For example, we will use the Pantawid Pasada Program and the subsidy for farmers and fisherfolks,” he said.  

Free bus rides along major routes and lower fares in public transport facilities are also on the table.

Lawmakers respond

Meanwhile, lawmakers have backed the president’s call, including SenatorS Migs Zubiri, Erwin Tulfo, and Ping Lacson, and Speaker Bojie Dy.

Senate President Tito Sotto said he will first discuss the matter with the president.

Meanwhile, Senator Win Gatchalian says cutting fuel taxes should be a last resort, as it may result in a potential revenue loss of ₱300 billion in one year.

“Ang problema lang with excise tax is malaki ang mawawala sa kaban ng gobyerno. At meron ding anggulo na hindi siya equitable dahil kung marami kang sasakyan makikinabang ka rin doon sa pagtanggal ng excise tax,” said Gatchalian. 

[Translation: The problem with the excise tax is it will lead to significant losses in government funds. It is also not equitable because individuals who own many cars will also benefit from the suspension of the excise tax.]