DOE calls for Congress to suspend petroleum taxes due to rising fuel prices

The Department of Energy (DOE) stated on Tuesday that legislative action is necessary to suspend excise tax or value-added tax (VAT) on petroleum products due to rising fuel prices caused by the conflict between Iran and Israel.

DOE officer-in-charge Sharon Garin emphasized in a Palace briefing that only Congress can amend current laws mandating these taxes, making it unlikely for the DOE to act unilaterally.

Garin highlighted that suspending or lowering these taxes could significantly impact government revenue, affecting public services such as road construction and health care, estimating potential losses of around P300 billion.

The DOE is currently exploring subsidies as a potential solution while continuing discussions with oil companies about staggering fuel price increases.

Oil prices dropped more than five percent on Tuesday following an agreement between Israel and the US for a bilateral ceasefire with Iran, raising hopes but leaving uncertainty regarding future fuel costs in the Philippines.