MANILA — Malacañang clarified on Wednesday that any reduction or suspension of excise taxes on petroleum products will apply only to incoming fuel shipments, not to fuel supplies already stored by oil companies.
Palace Press Officer Claire Castro explained that adjustments under the recently enacted Republic Act 12316 will only affect newly imported fuel once the law takes effect. The measure, signed by President Ferdinand Marcos Jr. on March 25, grants the President authority to temporarily reduce or suspend excise taxes on petroleum products if global oil prices surge.
Speaking in a radio interview, Castro said the public should understand that the tax adjustments will not be applied retroactively to current inventories held by fuel companies.
“Only new fuel supplies entering the country will be covered by any suspension or reduction of excise tax,” Castro said. She noted that excise taxes on petroleum products are imposed upon entry into the country, which means previously imported fuel stocks remain subject to the existing tax rates.
The law will take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
RA 12316 was passed in response to rising global oil prices linked to tensions and conflict in the Middle East. The measure allows the government to intervene and ease fuel costs if international crude prices remain elevated.
Castro said there is still no estimate on how much fuel prices could decline if the tax adjustment is implemented, as global oil prices continue to fluctuate. Authorities are still studying market trends and calculating possible reductions.
Under the law, the President may exercise the emergency authority only if global oil prices reach at least USD80 per barrel for 30 consecutive days.
Castro explained that the condition must be met continuously before any suspension or reduction of excise taxes can be implemented.
If prices drop below the threshold—even briefly—the emergency provision cannot immediately take effect, she added.
ia/xf
