Senator Christopher “Bong” Go called for more responsive and inclusive fuel relief mechanisms following the enactment of Republic Act No. 12316, a measure that allows the temporary suspension or reduction of fuel excise taxes during periods of high global oil prices.
Go, a co-author and co-sponsor of the law, emphasized that while existing fuel subsidy programs largely benefit the transport sector, key sectors such as farmers and fisherfolk must not be left behind.
“Layunin ng batas na ito na magkaroon ng agarang mekanismo para maibsan ang epekto ng mataas na presyo ng langis sa ating mga kababayan. Kapag tumataas ang presyo ng krudo sa pandaigdigang merkado, ramdam agad ito sa pang-araw-araw na gastos ng bawat Pilipino,” Go said in a statement.
The senator stressed that rising fuel costs have a direct impact on food production and distribution, underscoring the need to extend government support to primary producers.
“May mga magsasaka at mangingisda na nagsasabi na hindi sila kabilang sa listahan ng mga nakakatanggap ng ayuda. Kadalasan, transport sector lang ang nabibigyan. Kailangan nating tiyakin na walang naiiwan, lalo na ang mga sektor na direktang apektado ng pagtaas ng presyo ng langis,” he pointed out.
Republic Act No. 12316 provides a legal mechanism for the government to respond to external energy shocks, particularly when global oil prices surge.
Under the law, the President may suspend or reduce excise taxes on petroleum products upon the recommendation of the Development Budget Coordination Committee (DBCC), in coordination with the Department of Energy (DOE), once the average Dubai crude oil price reaches or exceeds $80 per barrel for at least one month.
The measure allows either full suspension or partial reduction of excise taxes, depending on prevailing economic conditions, and may be applied to specific petroleum products.
However, Go clarified that safeguards are in place to ensure that the intervention remains temporary and measured.
“Hindi ito basta-bastang pagtanggal ng buwis. May malinaw na batayan kung kailan ito ipapatupad at kung gaano katagal. Layunin nito na magbigay ng ginhawa sa tamang panahon nang hindi naaapektuhan ang pangkalahatang balanse ng ekonomiya,” he explained.
Go explained that any suspension or reduction may only be implemented for up to three months at a time, with limits set within a calendar year.
The law also mandates the automatic reversion to original excise tax rates once global oil prices fall below the threshold or after the authorized period lapses.
The authority granted under the measure will remain in effect until December 31, 2028.
To ensure transparency and accountability, the law requires the President to submit a report to Congress within 15 days from the issuance of any suspension or reduction order, and monthly thereafter, through the DBCC.
“Mahalaga na may malinaw na ulat at datos sa bawat hakbang. Dapat nakikita ng publiko kung paano ginagamit ang batas na ito at kung paano nito natutulungan ang ekonomiya at ang ordinaryong mamamayan,” Go added.
