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Senators push to expand tax relief to diesel, gasoline

Metro Manila, Philippines – While senators welcome the suspension of excise taxes on LPG and kerosene, they are urging the Marcos administration to extend the same relief to diesel and gasoline soon to help bring down fuel prices.

“Nagtanggal nga sila ng excise tax pero hindi pa nila isinama ang diesel na siyang numero unong ginagamit ng ating mga driver, mangingisda, at magsasaka,” Senator Imee Marcos said in a statement on Tuesday, April 14. 

[Translation: They removed the excise tax, but they did not include diesel, which is the primary fuel used by our drivers, fisherfolk, and farmers.]

She urged the administration of her brother, President Ferdinand Marcos Jr., to immediately widen the tax break.

“‘Wag na sana nilang unti-untiin ang pag-aanunsyo kada klase ng produktong petrolyo at idamay na nila ang krudo agad-agad,” she said. 

[Translation: They should no longer roll this out piece by piece for every type of petroleum product and should include crude oil right away.]

Senator Erwin Tulfo said he agrees with the suspension of excise tax on cooking gas and kerosene, but finds it lacking. He said that when Congress deliberated on the bill granting the president the authority to suspend excise taxes, his understanding was it would cover all fuel products as pump prices skyrocket.

“I’m sure narinig na nila yun na kulang pa. Talagang naghihikahos na [I’m sure they’ve already heard that it’s not enough. People are really struggling],” he said. 

“Why don’t we just wait? Siguro then in the next few days baka isunod na rin yung diesel at gas [Maybe in the next few days, diesel and gasoline will also be included],” he added. 

Tulfo said the decision ultimately rests with the executive branch, which must balance consumer relief with the impact of billions of pesos in foregone revenues if excise taxes on all fuel products are suspended.

He had earlier pushed for the suspension not only of excise taxes but also the 12% value-added tax (VAT) on petroleum products, though he acknowledged this may not be feasible at present.

During a Senate crisis committee hearing on Monday, Finance Undersecretary Karlo Adriano said the policy-making Development Budget Coordination Committee recommended limiting the suspension to LPG and kerosene as the “most efficient way” to deliver subsidies to the most affected sectors, noting that poorer households primarily use these products.

Committee chair Sherwin Gatchalian appealed to the executive to review the policy on a weekly basis to allow timely adjustments in response to fuel price movements.

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