Marcos Signs Emergency Measure To Slash Fuel Taxes
Cover photo: President Marcos rolls out cash aid, subsidies to cushion impact of rising oil prices, 17 March 2026/PCO
MANILA, Philippines — President Ferdinand Marcos Jr. on Wednesday, 25 March 2026, signed into law a critical measure granting him emergency powers to suspend or reduce excise taxes on petroleum products.
The move is a direct response to the escalating conflict in the Middle East, which has caused domestic pump prices to skyrocket, with diesel recently projected to hit as high as ₱140 per litre.
The new legislation, designated as Republic Act No. 12316, was signed just hours after the President declared a state of national energy emergency via Executive Order No. 110.
Key Provisions of Republic Act No. 12316
The law amends the National Internal Revenue Code of 1997 to provide the Executive branch with more flexibility during global economic shocks. Key features include:
The $80 Threshold: The President may exercise these powers once the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), reaches or exceeds $80 per barrel for a period of one month.
Duration: Any issued suspension or reduction is valid for a maximum of three months at a time.
Scope: The President has the discretion to apply the tax relief to specific petroleum products and may choose between a full suspension or a partial reduction.
Sunset Clause: These emergency powers are temporary and will expire on 31 December 2028.
Safeguards: Within 15 days of exercising the power, the President must submit a report to Congress detailing the factual basis, the estimated foregone revenue, and the projected impact on inflation
