The Development Budget Coordination Committee (DBCC) is completing its evaluation on the potential suspension of fuel excise taxes following persistent increases in global crude prices, Palace Press Officer Claire Castro confirmed Thursday.
Castro noted that while the subject was not taken up during the 11th Economy and Development Council meeting chaired by President Ferdinand Marcos Jr. on Wednesday, economic managers are actively working on the technical review.
“Nakausap po natin si (Budget) Secretary Kim de Leon at ito po ay kanilang e-evaluate at for finalization. Kapag na-finalize na po ay ibibigay po agad nila ang rekomendasyon sa Pangulo,” Castro stated during a press briefing.
The ongoing fiscal assessment was triggered by formal certification from the Department of Energy (DOE) confirming that Dubai crude oil benchmark prices had breached the legal threshold required to initiate tax relief under Republic Act 12316.
Under RA 12316, the President holds the authority to temporarily reduce or suspend excise levies on specific petroleum products, upon the DBCC’s recommendation and in consultation with the Energy Secretary, whenever the one-month average price of Dubai crude hits or exceeds $80 per barrel.
Recent data provided by the DOE indicates that average crude oil prices surged to $99.41 per barrel during the one-month period spanning August 13 to September 11, well above the statutory trigger level.