DOE confirms oil prices hit threshold for fuel tax relief

• DOE has certified that crude oil prices crossed the US$80-per-barrel mark that lets government consider cutting or suspending fuel excise taxes

• Pump prices already jumped from September 15–21: gasoline up P5.68/liter, diesel up P4.31, kerosene up P4.62

• The certification now goes to the DBCC for review — it clears a legal requirement but doesn’t guarantee a tax cut

The Department of Energy (DOE) has confirmed that global oil prices have crossed a key legal trigger point, clearing the way for the government to consider cutting or suspending fuel excise taxes. Under the law, once the average price of Dubai crude oil hits US$80 a barrel for a month, officials can start the process to lower taxes on gasoline, diesel, and other petroleum products — and that threshold has now been met.

The DOE said the certification comes after a sharp rise in pump prices from September 15 to 21, driven by climbing international oil costs. Gasoline rose by P5.68 per liter, diesel by P4.31, and kerosene by P4.62 during that stretch.

From August 13 to September 11, Dubai crude averaged US$99.41 per barrel — well above the US$80 threshold set under Republic Act No. 12316, the law that allows fuel tax relief when oil prices climb this high.

With the DOE’s certification now submitted, the issue moves to the Development Budget Coordination Committee (DBCC) for review.

“We know that every increase at the pump affects more than the cost of filling up a vehicle. It affects the daily budget of families, the livelihood of our drivers, and the operating costs of businesses. The DOE has completed the certification required under the law, and we will continue working with the government’s economic team on measures that can provide relief to consumers,” said Energy Secretary Sharon Garin.

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Under RA 12316, the President can suspend or reduce fuel excise taxes, but only on the DBCC’s recommendation and in coordination with the energy secretary — and only after Dubai crude prices average US$80 a barrel or more for the month before any order is issued. Any tax suspension or reduction can apply to specific fuel products, in full or in part, for up to three months.

Importantly, the certification itself doesn’t trigger a tax cut automatically — it simply satisfies one required step in the process.

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The DOE also reported that the country’s fuel supply remains stable despite rising global prices. As of September 11, the Philippines had enough stock to last an estimated 57.17 days for gasoline, 60.80 days for diesel, 124.57 days for kerosene, 60.56 days for jet fuel, 42.29 days for fuel oil, and 39.27 days for liquefied petroleum gas (LPG).