NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
S.B. No. 229
Senate
of U)r
72 JUL-7 P5 58
mxEiv:3G;.
INTRODUCED BY SENATOR ROBINHOOD PADILLA
AN ACT
PROVIDING FOR THE SUSPENSION OF EXCISE TAXES ON UNLEADED 
PREMIUM GASOLINE, REGULAR GASOLINE, AND DIESEL FUEL OIL, 
AMENDING FOR THIS PURPOSE SECTION 148 OF THE NATIONAL INTERNAL 
REVENUE CODE, AS AMENDED
EXPLANATORY NOTE
The continuous hike of oil prices due to the developments In the world market 
particularly, the geopolitical war between Ukraine and Russia, has worsened our 
economic downturn brought by the impact of the COVID-19 pandemic.
The soaring oil prices in recent months which speedily spill over to the food 
basket also directly hit the vulnerable sectors of society. With around 8% of an 
average Filipino family's budget allocated to fuel, water and other utilities, and 
transportation costs rising unabatedly, the clamor for government action becomes 
more urgent and compelling.
As a net importer of oil, we are heavily dependent on the price indicated by the 
market. Based on the Banko Sentrai ng Pilipinas' (BSP) latest assessment as of 
February 17, 2022, the Dubai crude oil price for this year is projected to average at 
USD 83.3 per barrel. Oil companies are obliged to implement price increase in 
domestic oil products: gasoline by P0.50 per liter, PI.65 per liter for diesel, and 
kerosene by PO.IO per liter effectively on June 28, 2022. These resulted In the year- 
to-date adjustments to stand at a net increase of P30.00/liter for gasoline, P45.90/liter 
for diesel, and P39.75/liter for kerosene.


Taxes levied on fuel also significantly Increased its market price. Pursuant to 
the Tax Reform for Acceleration and Inclusion Act (TRAIN), the excise tax on regular 
and unleaded premium gasoline and diesel fuel oil is currently set at PIO.OO and P6.00 
per liter of volume capacity, respectively. A Value Added Tax (VAT) of 12% is also 
imposed on the sale of gasoline and diesel.
While the suspension of the collection of excise taxes on gasoline and diesel 
due to the rising pump price appears to be a sound policy, the authority granted under 
the TRAIN law to suspend the collection of excise taxes on these products was 
transitory and covered only the years of 2018 to 2020.
To this end, this bill proposes to amend Section 148 of the National Internal 
Revenue Code to provide for the automatic suspension of the excise tax on gasoline, 
unleaded premium gasoline when the average Dubai crude oil price based on Mean of 
Platts Singapore (MOPS) for three (3) months prior to the scheduled increase of the 
month reaches or exceeds Eighty dollars (USD 80) per barrel.
In view of the foregoing, the approval of this bill is earnestly sought.
^ ROBIN HOOD PADILLA


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
S.B. No. 229
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72 JUL-7 P5 58
RECEIVLDBv
INTRODUCED BY SENATOR ROBINHOOD PADILLA
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AN ACT
PROVIDING FOR THE SUSPENSION OF EXCISE TAXES ON UNLEADED 
PREMIUM GASOLINE, REGULAR GASOLINE, AND DIESEL FUEL OIL, 
AMENDING FOR THIS PURPOSE SECTION 148 OF THE NATIONAL 
INTERNAL REVENUE CODE, AS AMENDED
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembied:
Section 1. Section 148 of the National Internal Revenue Code (NIRC), as 
amended, is hereby further amended to read as follows:
Sec. 148. Manufactured Oils and Other Fuels.- There shall be collected on 
refined and manufactured mineral oils and motor fuels, the following excise 
taxes which shall attach to the goods hereunder enumerated as soon as they 
are in existence as such:
XXX
'{For the period covering 2018 to 2020,] THE {schedulod incroaso in 
the} excise tax on [fuel] UNLEADED PREMIUM GASOLINE, REGULAR 
GASOLINE, AND DIESEL FUEL OIL as imposed in this Section shall be 
AUTOMATICALLY suspended when the average Dubai crude oil price based 
on Mean of Platts Singapore (MOPS) for three (3) months {prior to the 
scheduled incroaso of tho month] reaches or exceeds Eighty dollars (USD 
80) per barrel."
XXX
Section 2. Repealing Clause - All laws, decrees, orders, rules and 
regulations, or other issuances or parts thereof inconsistent with the provisions of this 
Act are hereby repealed and modified accordingly.


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Section 3. Implementing Rules and Regulations -Within ninety (30) days 
from the effectivity of this Act, the DOF, in consultation with the appropriate 
government agencies, shall promulgate rules and regulations necessary for the 
effective implementation of this Act.
Section 4. Effectivity -This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,