Legarda calls for diesel, gas tax suspension as relief remains unfelt

Senator Loren Legarda on Monday called for the immediate suspension of fuel excise tax and value-added tax (VAT) on diesel and gasoline, warning that government response has been too slow and risks arriving too late for millions of Filipinos already struggling to cope with rising prices.

This follows the April 13, 2026 press conference of President Ferdinand R. Marcos Jr., where he announced the suspension of excise taxes on LPG and kerosene. He also noted that the possible suspension of excise taxes on diesel and gasoline will still be discussed in the next UPLIFT meeting.

“Malaking tulong ang suspensyon ng buwis sa LPG at kerosene dahil direktang naaapektuhan nito ang mga kabahayan at ang food service sector. Ngunit nakapagtataka na hindi pa rin tinutugunan ang pangunahing panawagan ng taumbayan, ang diesel, at gasolina na siyang ginagamit ng magsasaka, tsuper, at mangingisda para kumita. Anim na linggo na mula nang sumiklab ang krisis sa Middle East, hanggang ngayon ba ay hindi pa din tapos ang pag-uusap sa polisiyang ito?” said Legarda.

In response, Legarda renewed her call to suspend fuel taxes immediately, saying the impact would be direct, immediate, and nationwide.

“Sa presyong ₱150 kada litro ng diesel, aabot sa humigit-kumulang ₱22.07 ang matitipid kung pansamantalang aalisin ng gobyerno ang ₱6 excise tax at 12% VAT. Samantala, sa gasolina na nasa ₱90 kada litro, mababawasan naman ng humigit-kumulang ₱19.64 kada litro kung aalisin ang ₱10 excise tax at 12% VAT. Kung agad tayong gagalaw, ang diesel na ₱150 ay magiging ₱128 at ang gasolina na ₱90, magiging ₱70 na lamang. Direkta itong mararamdaman ng mga mangingisda, magsasaka, driver, at bawat pamilyang Pilipino,” she stated.

Legarda also rejected the argument that targeted ayuda is necessarily the more efficient response, saying this overlooks not only the slow pace of government processes but also the deeper structural problems that arise when assistance is routed back through layers of bureaucracy.

“Mabagal ang gobyerno. Nakita na natin, ilang linggo na, hindi pa rin nararamdaman ang tulong. Kapag ang buwis sa petrolyo, tulad ng VAT, ay dadaan pa sa gobyerno, babalik pa ito sa burukrasya, iikot pa sa kung ilang pirma, dadaan pa sa isang ahensya papunta sa isa pa, kulang-kulang din ang listahan ng bibigyan, at hindi naman tayo pinanganak kahapon para hindi malaman na may makikinabang pa na iba sa rollout niyan. Samantalang kung ibababa ang buwis, diretso itong mararamdaman,” she said. “Hindi dapat ayuda lang. Para lamang ito sa pinakamahirap na kailangan itawid. Mawawalan din ito ng silbi kung hindi naman ito makararating sa mga kababayan natin sa oras na kinakailangan.”

Legarda also pushed back against claims that fuel tax cuts disproportionately benefit the rich, saying such arguments overlook how fuel costs permeate the entire economy and directly affect the most vulnerable sectors.

“Ang mangingisda, magsasaka, tsuper, lahat sila nakaasa sa presyo ng krudo para kumita. Kapag mataas ang presyo, sila ang unang tinatamaan, wala nang pumapalaot, at wala nang nagdadala ng ani sa palengke.” she said.

She emphasized that while some argue that fuel consumption is higher among middle- and upper-income groups, there is a clear lack of analysis on the broader economic consequences of sustained high fuel prices, including job losses, reduced incomes, business closures, and the risk of near-poor households falling back into poverty.

“Marami sa mga pananaw na ito ay maganda para sa diskusyon, pero iba ang nakikita nating reyalidad. Nawawalan ng pasada ang tsuper, hindi na nakakalabas ang mangingisda, nalulugi ang maliliit na negosyo. Hindi na ito abstract assumptions lamang. Ito na ang isinasabuhay ng mga maralitang Pilipino,” she stressed.

Legarda said that while economic models have their place, policy decisions must respond to actual conditions on the ground. “Darating ang punto na hindi na sapat ang diskusyon sa teorya. Kailangan nating tumugon sa aktwal na nararanasan ng mga Pilipino ngayon,” she added.

She stressed that immediate tax relief will help ease pressure on livelihoods and reduce operating costs at the ground level without delay.

“Hindi na mapipilitan ang mga magsasaka na magtapon ng gulay sa kalsada dahil lang sa sobrang mahal ng biyahe. Kapag gumalaw ang transport, gagalaw ang supply chain,” she added.

Legarda emphasized that increased supply will also help stabilize prices and prevent shortages.

She then raised concerns that, at present, there are no sufficient safeguards to ensure that alternative government interventions will be delivered efficiently and without leakage.

This statement comes after the President acknowledged that the government is collecting windfall VAT revenues from higher fuel prices, which he says will be used to finance crisis response measures across affected sectors.

“Kakagaling lang natin sa mga isyu sa flood control, pero wala pa ring malinaw na structural safeguards na inilatag ang pamahalaan para matiyak na walang korapsyon, tapos gusto pa nating patuloy na pagkakitaan pa ng gobyerno ang mataas na presyo ng petrolyo. Dapat ilabas din ng pamahalaan kung magkano nga ba ang kinikita nito sa mataas na buwis na sumasabay sa presyo ng petrolyo.” she said.

Meanwhile, Legarda emphasized that the government does not need to incur additional debt to fund temporary tax relief. She pointed to existing provisions in her proposed Bayanihan 3 bill, which direct agencies to discontinue non-essential government expenditures and immediately declare as savings funds tied to projects that lack feasibility studies, have no clear implementation plan, or exceed the implementing capacity of the agency.

Legarda said government can immediately generate fiscal space by reducing or suspending non-essential travel, events, capacity-building activities, renovations, and other non-emergency capital outlays, shifting more transactions to digital platforms to cut spending on supplies, fuel, and utilities, and imposing a temporary freeze on hiring and creation of new offices except for critical positions in the health and education sectors, particularly teachers and health workers.

Legarda also flagged the lack of clear and consistent data from economic managers, noting that even after weeks of public discussion, key figures remain unconfirmed and, in some cases, inconsistent. She pointed out that instead of a single, coherent fiscal position, this lack of certainty creates confusion rather than clarity. She warned that this uncertainty not only affects domestic decision-making but also sends a troubling signal externally, suggesting that the government does not have a firm grasp of the situation nor does it have a unified strategy to address it.

“Ang mga kapitbahay natin tulad ng Vietnam, noong Marso pa lang nagsuspinde na ng buwis sa langis hanggang Hunyo. Samantalang tayo, hanggang ngayon hindi pa rin malinaw kung magkano talaga ang mababawas sa pondo ng gobyerno kapag sinuspinde ang mga buwis,” Legarda lamented.

Finally, the senator noted that the government itself has identified around ₱238 billion in available fiscal space for crisis response, further questioning why part of this cannot be used for fuel price stabilization.

Legarda maintained that the government still has enough room to act decisively through better spending choices, but stressed that fiscal caution should not be used as an excuse for inaction while the public bears the full weight of the crisis. (30)