Metro Manila, Philippines – Senator Sherwin Gatchalian is urging the government to refund fuel excise taxes already paid by oil companies to immediately cut pump prices.
In a press briefing on Monday, April 6, Gatchalian acknowledged that the law granting the president the authority to suspend or reduce excise taxes — set to take effect next week — would not result in an immediate drop in prices.
“Kasi ang sistema natin, pagpasok ng langis, bayad ka kaagad ng excise tax. So marami dito sa old inventory nila, bayad na ‘yung excise tax. So kahit na i-suspend on April 13, kung ibebenta ‘yung old inventory, hindi naman natin mararamdaman iyan,” Gatchalian said.
[Translation: Our system requires oil companies to pay excise tax as soon as fuel is imported. That means a large portion of their existing inventory has already been taxed. So even if the suspension takes effect on April 13, we won’t immediately feel the impact if companies are still selling old inventory.]
“Kung 50 days nga ‘yung inventario ngayon, kung ang gasoline is 57 days, ang diesel is 47 days, hihintayin natin 57 and 47 days para maramdaman natin ‘yung pagbaba ng excise tax. Kasi ito ‘yung imbentaryo nandito na, na bayad na eh,” he explained.
[Translation: If the current inventory lasts around 50 days — 57 days for gasoline and 47 days for diesel— we would have to wait that long before consumers feel the reduction in excise taxes. That’s because the fuel already in stock has been taxed.]
Gatchalian pointed out that advancing the revenue loss would provide immediate relief to consumers. He said his office is making the computations.
Senator Pia Cayetano, chairperson of the committee on ways and means, had explained during plenary deliberations that the projected price reductions — ₱11.20 per liter for gasoline and ₱6.72 per liter for diesel — would only be felt once oil companies have sold all fuel previously purchased with excise taxes.
Gatchalian, chairman of the ad hoc committee on the Middle East crisis, said the panel will hold another hearing on Monday, April 13, to review the government’s response.
The country has seen soaring fuel prices and supply risks due to the Middle East crisis, prompting President Ferdinand Marcos Jr. to declare a state of national energy emergency.
