TRAIN Law suspends excise taxes on fuel once global prices exceed $80 per barrel, Senator Aquino says

Senator Bam Aquino reminded the government that the Tax Reform for Acceleration and Inclusion (TRAIN) Law contains a provision allowing the automatic suspension of excise taxes on fuel products once global oil prices exceed $80 per barrel.

Aquino noted that the safeguard he pushed under the TRAIN Law mandates the suspension of excise tax collection on petroleum products if the average world market price of oil reaches $80 per barrel over a three-month period.

Local oil firms have announced price hikes effective Tuesday, with gasoline set to increase by P1.90 per liter and diesel by P1.20 per liter.

"Sa isinulong nating safeguard sa TRAIN Law, pinapayagan ang automatic suspension ng pangongolekta ng excise tax sa langis kapag lumampas sa $80 kada bariles ang presyo ng langis sa world market," Aquino said.

“Makatutulong ang suspension na ito para mabawasan ang bigat ng inaasahang pagtaas ng presyo ng langis dahil sa kaguluhan sa Middle East," he added.

The senator cautioned that rising oil prices could create a domino effect, driving up the cost of food and other essential goods and further burdening Filipino consumers. He is expected to file a resolution addressing the issue.

In the 20th Congress, Aquino introduced Senate Bill No. 265, which seeks to remove the excise taxes imposed under the TRAIN Law on diesel, kerosene, liquefied petroleum gas (LPG), fuel oil, and unleaded gasoline.

“These taxes have contributed to higher fuel prices, which in turn cascade into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos,” he said.

Aquino emphasized that if enacted, the measure would provide immediate relief to commuters and drivers, particularly those operating diesel-powered jeepneys, buses, and delivery vehicles.

He added that it would also reduce household spending on cooking fuel and lighting, especially in poor and off-grid communities, while lowering fuel and logistics costs for producers and small businesses.

“It will also help stabilize prices of basic goods and services amid persistent inflationary pressures,” he pointed out.

-Paraluman News