The economic team will work with Congress to secure authority for President Ferdinand R. Marcos Jr. to temporarily reduce excise taxes on fuel should the price of Dubai crude oil exceed USD80 per barrel, Finance Secretary Frederick Go said Tuesday.
Go, however, said this does not mean the authority would be automatically exercised.
“It is a precautionary measure – a ready policy tool that the President may use, if necessary, to act swiftly in protecting Filipino consumers and safeguarding the broader economy,” he said in a statement.
Go earlier said the price of Dubai crude is trading at USD76 to USD78 per barrel.
The possible reduction of excise tax on fuel is part of the government’s efforts to help cushion the impact of the ongoing conflict in the Middle East.
Go said Marcos’ directive is to closely monitor developments arising from the ongoing conflict involving the United States, Israel, and Iran, particularly its potential impact on global oil markets and the Philippine economy.
While the country still has an adequate oil buffer equivalent to approximately 50 to 60 days of national demand, Go said the government is closely monitoring global oil prices, the duration of the conflict, and the possibility of sustained higher oil prices.
“Amid the ongoing conflict, we remain vigilant, prepared, and committed to protecting the welfare of all Filipinos,” he said.
“The Department of Finance will continue to coordinate closely with relevant agencies to ensure a calibrated, responsible, and timely response to evolving global developments.” (PNA)