MANILA, Philippines — President Ferdinand Marcos Jr. has signed Republic Act No. 12316, granting him emergency powers to suspend or reduce fuel excise taxes, and he may exercise this authority by April 12 or 13 to cushion Filipinos from soaring pump prices. The law was enacted on March 25, 2026, amid global oil market volatility driven by Middle East tensions.

The new law allows the President, upon recommendation of the Development Budget Coordination Committee (DBCC) and in coordination with the Department of Energy, to suspend or reduce excise taxes on petroleum products if the average Dubai crude oil price reaches or exceeds US$80 per barrel for one month. The suspension can last up to three months at a time, but not more than one year in total.

Marcos explained that the measure was designed to shield consumers from sudden spikes in fuel costs. “By the end of the day I will be signing that law already,” he said during a press briefing in Malacañang, adding that he would wait for the “best time” to implement the suspension.

Industry sources have warned of another round of hefty price hikes, with diesel possibly increasing by ₱15.50 per liter and gasoline by ₱3.50 per liter next week. This has intensified calls for immediate government intervention, as transport groups and consumer advocates argue that the excise tax suspension could provide temporary relief to households and businesses.

Republic Act No. 12316 amends Section 148 of the National Internal Revenue Code of 1997, giving the President flexibility to act swiftly in response to global oil shocks. The law was signed following weeks of debate in Congress, where lawmakers stressed the need for emergency powers to address the worsening energy crisis.

The Department of Finance has cautioned that suspending excise taxes could reduce government revenue, but officials acknowledged that the measure is necessary to balance fiscal stability with consumer protection. The administration is expected to announce by April 12 or 13 whether the suspension will take effect, depending on oil price movements and DBCC recommendations.

For millions of Filipinos, the decision could mean immediate relief at the pump, especially for public transport drivers and low-income households who are most affected by rising fuel costs. Analysts note that while the suspension may ease inflationary pressures in the short term, long-term solutions such as renewable energy investments and supply diversification remain critical.

This development marks a pivotal moment in the government’s energy policy, as President Marcos prepares to use his newly granted powers to mitigate the impact of global oil volatility on the Philippine economy.