Any reduction or suspension of excise tax on petroleum products will apply only to incoming fuel shipments and not to existing inventory, Malacañang clarified Wednesday as the government prepares for possible price interventions.
Palace Press Officer Claire Castro said adjustments under Republic Act 12316 will cover only newly arriving fuel supply and will not affect stocks already held by oil companies.
“Gusto lang nating liwanagin ito. Itong pagpataw or pag-reduce, pagtanggal, pag-suspend ng excise tax, ito po ay para sa bagong parating na bagong supply ng fuel,” Castro said in a radio interview.
Castro issued the clarification following questions on how the newly signed law would be implemented.
Republic Act 12316, signed by President Ferdinand R. Marcos Jr. on March 25, grants the President emergency powers to temporarily suspend or reduce excise tax on petroleum products in response to rising global oil prices linked to tensions in the Middle East.
The measure will take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
She explained that excise taxes are imposed upon the entry of fuel products, which is why only new shipments will be affected by any adjustment.
Existing inventories, she said, will remain subject to current tax rules.
“Hindi ‘yung inventory nila ngayon ‘yung papatawan, ‘yung sabihin na wala nang excise tax. Hindi po. Kung ano lang yung papasok, kasi upon entry iyan. Doon lamang nila mararamdaman kung dapat bang walang excise tax o na-reduce ang excise tax,” Castro said.
Castro also said the government has yet to determine how much fuel prices may decline should the emergency powers be used, noting that global crude prices remain volatile. Authorities are still computing possible adjustments while monitoring international oil price movements.
She added that the emergency powers may only be exercised if global oil prices reach USD80 per barrel for 30 consecutive days, a threshold required before any suspension or reduction of excise taxes can be implemented.
Officials emphasized that fluctuations below the benchmark would delay or prevent the use of the measure.
Castro said the government will continue assessing market conditions before announcing any specific percentage reduction or timeline for implementation.
