The Philippine Senate has approved on third and final reading Senate Bill No. 1982, a measure granting President Ferdinand 'Bongbong' Marcos Jr. emergency powers to temporarily suspend or reduce excise taxes on petroleum products amid rising global oil prices on Tuesday, March 17.

The proposed law aims to provide the government with a flexible policy tool to cushion the impact of fuel price hikes on consumers and help stabilize inflation, particularly as geopolitical tensions continue to drive up global oil costs.

Under the measure, the President may exercise the authority upon the recommendation of an inter-agency economic team, especially if global crude prices—such as Dubai crude—reach critical levels or during periods of national emergency. The tax reduction or suspension may be implemented for a limited period, ensuring it remains a temporary relief mechanism.

The bill builds on provisions under the Tax Reform for Acceleration and Inclusion Law (TRAIN Law), which imposed excise taxes on fuel but also allows adjustments under extraordinary circumstances. Policymakers said the proposed measure strengthens the government’s ability to respond quickly to volatile fuel prices without requiring new legislation each time.

President Marcos earlier certified the bill as urgent, citing the need to protect Filipino consumers and sustain economic growth as higher fuel costs threaten to increase transportation expenses, commodity prices, and overall inflation.

Once enacted, the measure is expected to provide immediate relief to motorists, transport operators, and industries heavily dependent on fuel, while balancing the potential impact on government revenues.