Motorists queue at some gasoline stations in Manila on March 16, 2026
STAR / Ryan Baldemor
MANILA, Philippines — The Development Budget Coordination Committee (DBCC) has determined that suspending excise taxes on gasoline and diesel would fail to provide “meaningful relief” to the public.
In a statement released on Tuesday, April 14, the inter-agency body said any reduction in the retail pump prices of gasoline and diesel resulting from a tax suspension would likely be marginal and quickly offset by the volatile dynamics of the global oil market.
This statement came after President Ferdinand Marcos Jr. had suspended the excise tax on liquefied petroleum gas and kerosene.
RELATED: Fuel tax collections up 15% amid transport protests
“By fully suspending excise taxes on kerosene and LPG, the government is directly helping every Filipino family and small businesses such as carinderias, meet everyday cooking and basic energy needs through savings of around P36.96 per 11-kg cylinder for LPG and P5.56 per liter of kerosene,” Finance Secretary Frederick Go said, citing the DBCC.
Despite the refusal to slash taxes on gasoline and diesel, the DBCC emphasized that the government is not leaving the transport sector behind.
Instead of a broad tax cut, the administration will continue to utilize “targeted and managed subsidies” to support those most affected by rising fuel costs.
Beneficiaries of these ongoing programs include public transit operators and drivers, commuters, farmers and fisherfolk.
“This measured and targeted response is designed to deliver immediate relief, ensuring that support reaches those who need it most, while preserving fiscal space to sustain essential public services and respond to an unpredictable global environment,” the DBCC said.
“The DBCC will continue to closely monitor global oil market developments and stands ready to adjust its policy response as needed,” it added.
Transport groups have been calling for the abolition of the excise tax on fuel due to surging oil prices driven by Middle East tensions.
Groups argue that excise taxes exacerbate this crisis, making operations unsustainable amid global oil shocks.
RELATED: Transport groups seek removal of fuel VAT
Since the start of the US-Iran tensions on February 28, the surge in oil prices ended on April 14, with oil firms implementing a rollback on oil prices.
RELATED: Oil prices set for rollback after weeks of increases
https://www.philstar.com/headlines/2026/04/14/2520939/dbcc-suspending-excise-taxes-gasoline-diesel-wont-provide-meaningful-relief
