MANILA, Philippines — Lawmakers at the House of Representatives of the Philippines have approved on second reading a proposed measure that seeks to remove or reduce excise taxes on petroleum products, a move that could potentially affect fuel prices across the country.

The chamber passed House Bill No. 8418 on Wednesday afternoon, March 11, 2026. The bill proposes the removal or reduction of excise taxes on oil and petroleum products, which are currently imposed under existing tax laws.

Supporters of the measure say the proposal is intended to ease the financial burden on consumers, particularly during periods of rising global oil prices. Fuel costs often have a ripple effect throughout the economy, affecting transportation fares, logistics, electricity generation, and the prices of basic commodities.

In the Philippines, excise taxes on fuel were introduced and gradually increased under the Tax Reform for Acceleration and Inclusion Law, commonly known as the TRAIN Law. The policy was designed to generate government revenue for infrastructure, social programs, and economic development initiatives.

However, critics of the existing fuel tax system argue that it adds significant costs to gasoline, diesel, and other petroleum products—costs that are eventually passed on to ordinary consumers. Transport groups and labor organizations have long called for the suspension or reduction of these taxes during periods of high global oil prices.

While many motorists and public transport operators have welcomed the proposed measure, economists caution that reducing or removing fuel excise taxes could also affect government revenues, which fund various public programs and infrastructure projects.

With the bill now approved on second reading, it will still need to pass third reading in the House before it can be transmitted to the Senate of the Philippines for deliberation and possible approval.

As debates continue, the proposal raises an important policy question: Will reducing fuel excise taxes truly provide long-term relief to consumers, or will the benefits be offset by reduced funding for government programs?

(Larawan mula kay sa: Philippine News Agency)