THE Development Budget Coordination Committee (DBCC) is set to meet next week to formalize its recommendation to President Ferdinand R. Marcos, Jr. on action to be taken regarding the fuel excise tax, the Department of Finance (DoF) said.
“The technical board will meet on Friday, while the main DBCC will meet next week, so that before April 13 the DBCC will have a recommendation for the President’s consideration and approval,” Finance Undersecretary Karlo Fermin S. Adriano told a Senate hearing on Thursday.
Republic Act No. 12316, signed late Wednesday, gives the President the authority to reduce or suspend the excise tax on petroleum products upon recommendation of the DBCC and the Department of Energy (DoE).
The law allows such action on fuel taxes once the Dubai crude oil benchmark exceeds $80 per barrel for 30 days.
During a Senate hearing on the impact of the Iran crisis on the economy, Sen. Paolo Benigno A. Aquino asked about the timeline for the President to make his decision.
Mr. Adriano responded that Mr. Marcos can issue an executive order (EO) on April 13 once the law comes into effect, which is 15 days after its publication in the Official Gazette.
“We will come up with the recommendation by next week, so that once the law comes into effect, the President can issue an EO,” he said.
Mr. Aquino added that the chamber had passed the measure after the Palace had certified it as urgent.
“We also hope that (the Executive branch) will act with urgency and if the earliest is April 13, then we expect it to happen by then,” he said.
The Philippines has been scrambling to secure its domestic oil supply after the escalating Iran war severely disrupted the global oil trade.
Iran controls the north shore of the Strait of Hormuz, which the entire energy output of Kuwait, Iraq, Bahrain and Qatar must transit. Petroleum from Saudi Arabia and the United Arab Emirates is partly affected, though these two countries have access to ports that bypass the strait.
The Philippines currently has about 45 days’ worth of oil supply, according to the DoE. — Adrian H. Halili
