Palace awaits recommendations on oil tax suspension | Inquirer News
Close  
To ease domestic prices

Palace awaits recommendations on oil tax suspension

By: - Reporter / @JeromeAningINQ
/ 05:25 AM March 01, 2022
Stock photo of fuel pumps, for story: Palace awaits recommendation on oil tax suspension

INQUIRER FILE PHOTO

MANILA, Philippines — Malacañang on Monday said it would wait for the recommendation of the Department of Finance (DOF) and the Development Budget Coordinating Committee (DBCC) on the suspension of the collection of excise on fuel imports amid the continued surge in global oil prices following Russia’s invasion of Ukraine.

“If there will be an option like that, it will have to begin with the recommendation from the DOF and its basis is the study of the DBCC. From there, the they finalize and transmit their recommendations to President Duterte,” Cabinet Secretary Karlo Nograles said in his briefing.

ADVERTISEMENT

Speaking at the televised Laging Handa briefing, Department of Energy (DOE) Undersecretary Gerardo Erguiza Jr. said the oil price hikes had more to do with the failure of the oil-producing countries to sustain their target daily output and the slowdown of oil production in the United States due to new energy policies.

He said the DOE supported bills amending the oil deregulation law to allow the government to intervene during prolonged oil price hikes and the suspension of the excise on fuel imports once crude oil prices reached $80 per barrel.

FEATURED STORIES

The House of Representatives has held three hearings on the bill but the Senate has not yet conducted any, he added.

“As early as October, we have been calling for, and we are the first one to call, officially through our letters [to Congress] for the oil deregulation law to be amended and the excise tax be suspended,” the DOE official said.

Erguiza said the department was projecting that oil would reach as high as $120 a barrel, which would translate to P66 average price per liter of gasoline and P59 for diesel in the Philippines.

He said he believed in the saying that “what goes up, must come down” and that oil prices would eventually go down.

In the meantime, Filipinos should help conserve fuel by avoiding “unnecessary travels,” he said.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Department of Finance, oil tax suspension, rising fuel prices, rising oil prices, Russia-Ukraine war
For feedback, complaints, or inquiries, contact us.

News that matters

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.