MANILA, March 25 (Xinhua) -- Philippine President Ferdinand Romualdez Marcos on Wednesday signed a law allowing the government to temporarily suspend or cut fuel excise taxes on petroleum when global oil prices reach a set threshold.
Republic Act No. 12316 authorizes the president, upon the recommendation of the Development Budget Coordination Committee and in coordination with the Secretary of the Department of Energy, to act when the average price of Dubai crude oil reaches or exceeds 80 U.S. dollars per barrel for one month.
Under the law, any suspension or reduction of fuel excise taxes may be implemented for up to three months at a time, but not exceeding a total of one year.
The tax rates will automatically revert to their original levels either one week after the one-month average Dubai crude price falls below 80 U.S. dollars per barrel, or after three months have elapsed, whichever comes first.
The measure is designed to give the government a flexible tool to cushion the impact of rising fuel costs on consumers and the broader economy.
The act will take effect in 15 days, and the authority granted to the president under the measure will remain in effect until Dec. 31, 2028. ■
