Suspend excise tax on fuel products, Lacson says

The increase in fuel prices has been reaching alarming levels and will likely worsen in the upcoming days. As such, Senator Panfilo “Ping” Lacson proposes a solution to the crisis which includes the suspension of excise tax on fuel products.

Senator Ping Lacson

According to Lacson, the suspension will provide ‘the much-needed breathing space’ for both motorists and affected sectors. The proposal will be a temporary solution only as it will cause the government to lose billions, which can affect the economy severely.

Lacson also said that oil prices have reached levels that were never seen before due to the Russia-Ukraine conflict. This is why Lacson is calling for the immediate suspension of excise tax on fuel products. 

“The Mean of Platts Singapore (MOPS) reference price for refined petroleum products and other oil price indices have already reached levels never seen before as a result of Russia’s invasion of Ukraine,” said Senator Ping Lacson.

Fuel prices are on a high

The Senator added that the suspension on fuel excise tax to be put in place once oil prices based on the MOPS reach or exceed USD90 (around Php 4,700) to USD100 (Php 5,235) per barrel. He also argued that the excise tax can be reimplemented when the prices go below the said levels. 

Gasoline prices could reach as much as Php 86.72, while diesel products could be sold at Php 81.10 per liter. The Department of Energy (DOE) stated that the said prices will likely occur if the global prices continue to increase. It added that Dubai crude oil could go up to USD 140 (or around Php 7,331) per barrel from the current USD 120.34.

The increasing fuel prices will affect various sectors

With all the price surge in fuel products, the chances of gasoline reaching Php 100 per liter locally are not unlikely, said DOE Secretary Alfonso Cusi. As such, the suspension of excise tax on fuel products could help motorists to keep moving forward including those working in the public transport sector, fisherfolk, and farmers.

“Government should give the people ‘breathing space’ so that the economy can recover. This is a temporary measure but it will be welcomed as we are all just trying to get back on our feet,” added Lacson.

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