CEBU CITY, PHILIPPINES — President Ferdinand Marcos Jr. signed into law a measure granting him authority to suspend or reduce excise taxes on petrol products, as the government seeks to manage the impact of rising oil prices.
Republic Act 12316 grants Marcos the emergency powers until Dec. 31, 2028. Once exercised, suspension or reduction of such taxes can be implemented for up to three months.
Upon using the emergency powers, the president is tasked to issue a report to Congress on the factual basis of the decision as well as projected revenues from fuel purchases that will be foregone, and expected impact on inflation and gas prices.
Speaking at a media briefing earlier Wednesday, March 25, Marcos said the bill, which he earlier certified as urgent, has been transmitted to Malacañang for approval within the day.
The government, however, has yet to decide when to exercise the powers to suspend fuel excise taxes. Erratic fuel prices have made it difficult to determine the best timing, Marcos said.
Supply outlook
The president said the country has about 45 days of fuel supply.
“Although we cannot be assured right now of the supply, we can be sure that at least for 45 days we will be all right. I think that we can be fairly confident,” Marcos said.
He added that the government is working to secure additional fuel sources from Japan, China, South Korea, India and Russia.
“We will already have a flow of oil, not just one delivery, not just two deliveries but a flow of petroleum and petroleum-related products,” he said.
Emergency powers
While he assured the public of a steady oil supply, Marcos has declared a state of national energy emergency, granting the Department of Energy authority to take additional measures to address supply risks.
He said the declaration is intended to expand the government’s options in responding to the crisis.
“I want to assure everyone that this should not mean that we should panic, it means that we are doing everything that we can to assess and alleviate the situation. It is a precautionary measure,” he said.
Cebu City
The Cebu City government has taken steps to protect essential services and ensure the supply of commodities after President Ferdinand R. Marcos Jr. declared a state of national energy emergency.
The city government reported that it is coordinating with national agencies to ensure readiness and maintain steady delivery of fuel, transportation, and basic commodities. It also assured city residents that measures are in place to mitigate possible impacts.
The Disaster Risk Reduction and Management Office, on the other hand, has been tasked with localized monitoring and public advisories.
Residents are urged to stay informed, practice energy conservation, and support ongoing initiatives designed to preserve stability during this period.
The President’s declaration, issued under Executive Order No. 110 on 24 March 2026, was based on the determination of the Department of Energy that escalating hostilities in the Middle East involving the United States, Israel, and Iran have severely disrupted global energy markets.
The closure of the Strait of Hormuz, a vital corridor for international oil shipments, has constrained global fuel supply and driven volatility in oil prices, posing imminent risks to the Philippines’ energy security as a net importer of petroleum products.
Executive Order No. 110 was issued pursuant to Section 25 of Republic Act No. 7638, the Department of Energy Act of 1992, which authorizes the President to declare a critically low energy supply or imminent danger thereof.
To safeguard national interest, the order adopts the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) as the government’s coordinated response framework.
The UPLIFT Committee, chaired by the President, includes the Executive Secretary and the Secretaries of Energy, Transportation, Social Welfare and Development, Agriculture, Finance, and Budget and Management, with the Department of Economic Planning and Development serving as Secretariat.
The Department of Energy has been directed to implement fuel optimization plans, enforce conservation measures, act against hoarding and profiteering, and mobilize the Philippine National Oil Company and PNOC Exploration Corporation to procure petroleum products.
The order authorizes advance payments exceeding the usual 15 percent cap when the Secretary of Energy certifies them necessary. Other agencies have been tasked to roll out complementary measures.
The Department of Transportation will mitigate impacts on commuters through fuel subsidies, fare support, expanded Libreng Sakay services, extended rail operating hours, and possible suspension or reduction of tolls and aviation charges.
The Department of Social Welfare and Development will expedite assistance under the Assistance to Individuals in Crisis Situations program and provide livelihood support to transport workers, farmers, fisherfolk, displaced workers, and repatriated Overseas Filipino Workers.
The Department of Agriculture will ensure the availability of food and agricultural inputs, release funds under the Presidential Assistance for Farmers and Fisherfolk program, and utilize the Quick Response Fund. The Department of Migrant Workers will mobilize mechanisms for monitoring, evacuation, and repatriation of distressed OFWs, backed by the AKSYON Fund.
The Department of Trade and Industry will monitor prices of necessities and prime commodities and extend support to micro, small, and medium enterprises.
Local government units across the country have been strongly urged to complement national directives by allocating resources and implementing measures within their jurisdictions.
The national energy emergency will remain in force for one year unless extended or lifted by the President.
The EO 110 takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.
| Written by Jean Mangaluz, Philstar.com & Caecent No-ot Magsumbol, Staff Member/RAE
