BUSINESS GROUPS welcomed the signing of a law that authorizes the President to suspend or reduce the excise tax on petroleum products, saying exporters require a cushion against the impact of rising fuel prices.
In a statement on Thursday, Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said the government must ensure implement the law in a timely and transparent manner.
“We hope that clear guidelines will soon be issued. Predictability is important so businesses can plan accordingly and pass on the benefits efficiently to consumers,” he said.
President Ferdinand R. Marcos, Jr. on Wednesday signed Republic Act (RA) No. 12316, which allows the President, upon recommendation of the Development Budget Coordination Committee, and in coordination with the Energy Secretary, to suspend or reduce fuel excise taxes if the Dubai crude benchmark hits or exceeds $80 per barrel for one month.
Mr. Ortiz-Luis said the high oil prices caused by the Iran war have had a ripple effect across supply chains.
He added that some of the association’s members are looking to shorter work hours due to higher input costs.
Allowing the President to suspend or reduce excise tax on fuel would help reduce operating costs; prevent further price pass-through; and protect jobs, Mr. Ortiz-Luis said.
“For exporters, especially MSMEs, transport and logistics costs are a major component of overall expenses. Any relief on fuel costs will help preserve competitiveness in already volatile global markets,” he added.
The signing of the RA 12316 followed the declaration by Mr. Marcos on Tuesday of a State of National Energy Emergency.
The United Portusers Confederation of the Philippines, Inc. (UPC) said both measures will help stabilize logistics costs and protect the country’s trade competitiveness.
UPC President Ma. Flordeliza C. Leong called such action “timely lifelines that can temper cost surges and prevent further disruption across the supply chain.”
She said that temporarily easing excise taxes for fuel would help reduce transport and handling costs.
The Financial Executives Institute of the Philippines (FINEX) called for full transparency on the government’s emergency fuel procurement, including, the recently announced P20-billion diesel purchase program.
It also urged the government to implement pricing benchmarks, safeguards against overpricing, and post-audit mechanisms will ensure public trust.
“Emergency measures should be assessed not only for energy savings, but also for their second-round effects on jobs, household income, and business viability,” FINEX said in a statement.
The American Chamber of Commerce of the Philippines called for advancing priority reforms such as amendments to the Electric Power Industry Reform Act (EPIRA), and strengthening the energy regulatory framework.
AmCham also cited the need to accelerate renewable energy development, improve grid infrastructure, and encourage greater private sector participation. — Beatriz Marie D. Cruz
