Former Department of Finance (DOF) Secretary Gary Teves stressed the importance of using targeted subsidies to support vulnerable sectors instead of immediately suspending excise taxes on petroleum products, during an interview on Special on Saturday (SOS).

Teves highlighted that while global oil prices have surged to $90–$92 per barrel due to ongoing Middle East tensions, the government should carefully weigh any policy changes.

“For the meantime, it is better to use what we call targeted subsidies. Government collections should be directed toward vulnerable sectors,” he said.

He added that measures such as keeping passenger transport fares low could help ease the burden on ordinary Filipinos.

“Yung mga transport, pwede din natin sa kanilang fees sa passenger, hindi masyado mataas. So yun dapat ating himayin muna bago tayo mag-decide right away.”

“Importante na i-balance natin yung epekto sa mga priority projects natin. Kung mawawala kaagad yan, kung i-suspend natin without the benefit of a serious study,” Teves added, warning that a hasty suspension of excise taxes could jeopardize crucial government programs.

The former finance chief also pointed out that a full suspension would disproportionately benefit wealthier households who consume more fuel, rather than the broader population.

He advocated giving Congress and the Economic Team at least 30 days to study the effects and determine the most appropriate policy.