Marcos eyes special power to reduce fuel excise tax

MANILA, Philippines, March 8 ------ Amid the raging conflict in the Middle East and its anticipated impact on consumer oil prices, President Marcos is eyeing “special powers” from Congress to lower the excise tax on fuel. “I am going to talk to the leaders in both the House and in the Senate. This is not yet a sure thing, but this is something that we are discussing and it could be helpful – is to give me, the President, the authority to reduce excise tax on petroleum products should Dubai crude exceed $80 per barrel,” he told a press conference at Malacañang. “We’re not there yet. 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,” Marcos added.

He stressed that the option to reduce excise tax is “an emergency measure.” “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 press conference was held after the President’s special meeting with his Cabinet at the Palace. Present at the press conference held at the Kalayaan Hall were Executive Secretary Ralph Recto, Energy Secretary Sharon Garin, Defense Secretary Gilbert Teodoro Jr., Foreign Affairs Secretary Ma. Theresa Lazaro, Finance Secretary Frederick Go, Department of Economy, Planning, and Development Secretary Arsenio Balisacan and Migrant Workers Secretary Hans Leo Cacdac.

The President said the price of the Dubai crude oil – used as benchmark for Asia – briefly hit $82 but closed at $76.50 per barrel. “We cannot know – we have heard many estimates how long this will last. What we heard coming out of the United States is four to five weeks. Hopefully, it will be less,” the Chief Executive said. However, in a scenario where the price of Dubai crude oil breaches the $80-$90 per barrel and stays within that range for two months and assuming that Iran exports continue, the government would roll out targeted fuel subsidies to the affected areas such as the transportation and agriculture sectors, Marcos said.

Go, meanwhile, clarified the “emergency powers” the President might seek from Congress may have to be granted if the Dubai oil exceeds $80 per barrel for “a certain period of time.” “And again, even if it exceeds $80 per barrel, doesn’t mean we react right away. It also has to exist for a certain period of time,” he said, without elaborating. In a separate statement, Go said “the Economic Team will work with Congress to secure authority for the President to temporarily reduce excise taxes on fuel should the price of Dubai crude oil exceed $80 per barrel.”

Source: philstar.com