The Department of Finance (DOF) said on Friday that motorists and consumers should start feeling lower fuel prices by mid‑April following the implementation of a new law giving the president authority to suspend or reduce excise taxes on oil products.
Under Republic Act No. 12316, the president may cut or temporarily suspend fuel excise taxes if global oil prices spike above set benchmarks, a move aimed at easing the burden of rising energy costs on Filipino households and businesses.
Finance officials said the impact of the law should be reflected in pump prices within the next few weeks as oil companies adjust their pricing in response to lower tax components. The timing could vary depending on global crude oil benchmarks and market adjustments by distributors.
The measure allows the government to act more swiftly in times of energy price stress by giving policymakers the flexibility to lower fuel charges without waiting for the regular tax revision cycle.
DOF undersecretaries emphasized that price reductions will depend on crude oil market movements, currency exchange trends, and how fast oil firms pass on tax savings to consumers.
Consumer groups and business sectors have welcomed the development, saying lower fuel costs would help bring down transportation and logistics prices, which could eventually ease inflationary pressures.
However, some economists cautioned that fuel price cuts may only be modest and temporary, especially if global oil prices remain volatile due to geopolitical tensions and supply‑chain disruptions.
Motorists have been closely watching pump prices as oil companies have steadily adjusted rates in recent weeks due to fluctuations in international crude markets.
Government officials said they will continue monitoring the situation to ensure that tax relief is translated into real savings for the commuting public.