Legarda acts on fuel crisis, seeks tax breaks for Filipinos

Senator Loren Legarda has moved decisively as fuel prices in the Philippines hit record highs, with diesel climbing by ₱17 to ₱24 per liter and gasoline by ₱7 to ₱13 per liter this week. The relentless increases, driven by Middle East tensions and global supply disruptions, have intensified inflationary pressures and strained Filipino households, transport workers, and small businesses.

Unlike other proposals that focus solely on suspending excise taxes, Legarda’s Senate Bill No. 1842, or the Fuel Price Relief Act, filed on March 9, 2026, establishes a Fuel Tax Stabilization Mechanism that empowers the President to suspend or reduce both excise and value-added taxes (VAT) on petroleum products—or apply a combination of both measures to arrive at the most appropriate price adjustment. This flexible approach aims to stabilize fuel costs while minimizing fiscal effects on government revenues.

“This measure is a moral imperative. We cannot allow Filipino families, farmers, fisherfolk, and public utility drivers to bear the heaviest burden of global crises. By temporarily lifting fuel taxes during extraordinary price surges, we provide swift relief and protect our people’s right to affordable necessities,” Legarda said.

The bill authorizes the President, upon recommendation of the Development Budget Coordination Committee (DBCC) and consultation with the Department of Energy (DOE), to suspend or reduce excise and VAT taxes on regular gasoline, unleaded premium gasoline, diesel fuel oil, kerosene, and liquefied petroleum gas (LPG). The suspension or reduction may last up to ninety days, extendable for another ninety days if conditions persist. Relief is automatically lifted once crude oil prices fall below the threshold for thirty consecutive days.

To ensure transparency, the DBCC and DOE are mandated to submit monthly reports to Congress and publish updates online detailing global oil prices and the revenue impact of any suspension or reduction. The bill also requires a biennial review of the USD 80 threshold, with adjustments capped at ten percent, subject to public consultation with stakeholders from the transport, agricultural, and industrial sectors.

The measure further prohibits hoarding, profiteering, cartelization, and other forms of market manipulation in the petroleum industry. The DOE, in coordination with the Department of Trade and Industry, Bureau of Customs, and Philippine Competition Commission, will monitor supply and pricing to protect consumers. Violators will face administrative, civil, and criminal penalties under existing laws.

Legarda emphasized that the measure balances fiscal responsibility with urgent social protection.

“By establishing a clear trigger for the temporary suspension or reduction of fuel taxes, this measure ensures relief when warranted by prevailing economic conditions,” Legarda said.

Legarda called on her colleagues in Congress to act without delay, warning that each day of inaction adds to the burdens faced by commuters, farmers, fisherfolk, and ordinary families. She underscored that the Fuel Price Relief Act is designed to protect lives and livelihoods, ensuring that Filipinos do not shoulder the weight of crises beyond their control. (30)

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Legarda nais ng tax break para sa publiko sa gitna ng krisis sa langis

Matapang na kumilos si Senadora Loren Legarda sa gitna ng patuloy na pagtaas ng presyo ng langis sa bansa, kung saan umakyat ang diesel ng ₱17 hanggang ₱24 kada litro at gasolina ng ₱7 hanggang ₱13 kada litro ngayong linggo. Ang walang humpay na pagtaas, dulot ng tensyon sa Gitnang Silangan at pagkaantala ng pandaigdigang suplay, ay nagdudulot ng mas matinding implasyon at mabigat na pasanin sa mga pamilyang Pilipino, mga tsuper, at maliliit na negosyo.

Hindi tulad ng ibang panukala na nakatuon lamang sa suspensyon ng excise tax, ang Senate Bill No. 1842 ni Legarda, o Fuel Price Relief Act na inihain noong Marso 9, 2026, ay nagtatatag ng Fuel Tax Stabilization Mechanism na nagbibigay kapangyarihan sa Pangulo na suspindihin o bawasan ang parehong excise at value-added tax (VAT) sa produktong petrolyo—o pagsamahin ang dalawang hakbang upang makamit ang pinakaangkop na pagbabago sa presyo. Layunin nitong patatagin ang presyo ng langis habang pinapaliit ang epekto sa kita ng pamahalaan.

“This measure is a moral imperative. We cannot allow Filipino families, farmers, fisherfolk, and public utility drivers to bear the heaviest burden of global crises. By temporarily lifting fuel taxes during extraordinary price surges, we provide swift relief and protect our people’s right to affordable necessities,” saad ni Legarda.

Binibigyan ng panukala ang Pangulo, sa rekomendasyon ng Development Budget Coordination Committee (DBCC) at konsultasyon sa Department of Energy (DOE), ng kapangyarihang suspindihin o bawasan ang excise at VAT sa regular gasoline, unleaded premium gasoline, diesel fuel oil, kerosene, at liquefied petroleum gas (LPG). Maaaring tumagal ng hanggang siyamnapung araw ang suspensyon o pagbabawas, at maaaring palawigin ng karagdagang siyamnapung araw kung magpapatuloy ang kondisyon. Awtomatikong matatapos ang tulong kapag bumaba ang presyo ng krudo sa ibaba ng itinakdang threshold sa loob ng tatlumpung magkakasunod na araw.

Upang matiyak ang transparency, inaatasan ang DBCC at DOE na magsumite ng buwanang ulat sa Kongreso at maglathala ng mga update online hinggil sa pandaigdigang presyo ng langis at epekto sa kita ng pamahalaan ng anumang suspensyon o pagbabawas.

Kailangan ding magsagawa ng biennial review sa USD 80 threshold, na maaaring baguhin ng hanggang sampung porsyento, alinsunod sa pampublikong konsultasyon kasama ang mga stakeholder mula sa transportasyon, agrikultura, at industriya.

Ipinagbabawal din ng panukala ang hoarding, profiteering, cartelization, at iba pang anyo ng manipulasyon sa merkado ng petrolyo. Sa koordinasyon ng Department of Trade and Industry, Bureau of Customs, at Philippine Competition Commission, babantayan ng DOE ang suplay at presyo upang maprotektahan ang mga mamimili. Ang mga lalabag ay haharap sa administratibo, sibil, at kriminal na parusa alinsunod sa umiiral na batas.

Binigyang-diin ni Legarda na ang panukala ay nagtataguyod ng balanse sa pagitan ng fiscal responsibility at agarang proteksyon sa lipunan.

“By establishing a clear trigger for the temporary suspension or reduction of fuel taxes, this measure ensures relief when warranted by prevailing economic conditions,” pahayag ni Legarda.

Nanawagan si Legarda sa kanyang mga kasamahan sa Kongreso na kumilos nang walang pagkaantala, kasabay ng pagbibigay babala na bawat araw ng kawalan ng aksyon ay dagdag na pasanin sa mga mananakay, magsasaka, mangingisda, at karaniwang pamilya. Iginiit niya na ang Fuel Price Relief Act ay idinisenyo upang protektahan ang buhay at kabuhayan, at matiyak na hindi pasanin ng mga Pilipino ang mga krisis na lampas sa kanilang kontrol. (30)