EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
)
SENATE
S. No. 2445
E-FILED ■ 2'Zl
Nov 08 2021 m
DATE..----- -----------------
time:
1:00 p.m.
Introduced by Senator Grace Poe
AN ACT
PROVIDING FOR THE AUTOMATIC SUSPENSION OF EXCISE TAXES ON 
REGULAR GASOLINE, UNLEADED PREMIUM GASOLINE, AND DIESEL, 
AMENDING FOR THE PURPOSE SECTION 148 OF THE NATIONAL INTERNAL 
REVENUE CODE, AS AMENDED.
Explanatory Note
According to the Philippine Statistics Authority (PSA) the Filipino family spends P239,000 
annually.1 Around 7.9% of the average Filipino family's budget is allocated for fuel, water, 
and other utilities.2 Previous studies have shown that a 10% increase in fuel prices can 
cause the number of poor Filipinos to increase.3
Rising fuel prices also have a ripple effect on food prices due to the higher cost of 
transportation. Finally, PUV drivers are directly affected, as they cannot increase fares to 
keep up with fuel prices without the approval of the Land Transportation Franchising and 
Regulatory Board (LTFRB).
Gasoline and diesel prices have been rising in recent months. The fuel monitoring system 
of the Department of Energy (DOE) reveals that the price of gasoline in Metro Manila has 
an average low of P58.55 and an average high of P70.52.4
The high prices are tied to the rising price of oil and finished products on the international 
markets. We are a net importer of fuel, which means that we must take the price that is
1 Philippine Statistics Authority (PSA). 2019. "Annual Family Income is Estimated at PhP 313 Thousand, on Average, 
In 2018". Accessed at https://psa.gov.ph/content/annual-family-income-estimated-php-313-thousand-average- 
2018.
2 ibid. "Expenditure Pattern for the Bottom 30 Percent and Upper 70 Percent Per Capita Income Group, at Current 
Prices, Philippines: 2015".
3 Asian Development Bank (ADB). "Has Inflation hurt the Poor? Regional Analysis in the Philippines". ERD Working 
Paper Series No. 112, May 2008.
4 Department of Energy (DOE). Fuel Price Monitor for the Week of October 24.


dictated by the market. Currently, the Singapore Mean of Platts (MOPs)- which is the 
reference used for pricing fuel in the country- has risen to $80 from $73 at the start of 
the month.5
However, taxes also add a significant amount to the price of fuel. On one hand, the excise 
tax on regular and unleaded premium gasoline- pursuant to the Tax Reform for 
Acceleration and Inclusion Act (TRAIN)- is currently set at PIO.OO per liter of volume 
capacity. On the other hand, the excise tax on diesel fuel oil is set at P6.00. A Value- 
Added Tax (VAT) of 12% is also imposed on the sale of gasoline and diesel.
There have been calls to suspend the collection of excise taxes on gasoline and diesel 
due to the rising pump prices. However, 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.
In line with the discussion above, 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.
Immediate approval of this measure is eagerly sought.
^RACE POE
5 Australian Institute of Petroleum. Weekly Petroleum Price reports from October 1 to October 24.


RECEIVED
EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
E-FILED ZiZ 
Nov 08 2021 m 
</>\
1:00 p.m.
SENATE
S. No. 2445
Introduced by Senator Grace Poe
AN ACT
PROVIDING FOR THE AUTOMATIC SUSPENSION OF EXCISE TAXES ON 
REGULAR GASOLINE, UNLEADED PREMIUM GASOLINE, AND DIESEL, 
AMENDING FOR THE PURPOSE SECTION 148 OF THE NATIONAL INTERNAL 
REVENUE CODE, AS AMENDED
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. — Section 148 of the National Internal Revenue Code
2 
(NIRC), as amended, is hereby further amended to read as follows:
3 
"Sec. 148. Manufactured Oils and Other Fuels.- There shall be collected on refined
4 
and manufactured mineral oils and motor fuels, the following excise taxes which
5 
shall attach to the goods hereunder enumerated as soon as they are in existence
6 
as such:
7 
XXX
8 
"[For the-period-covcring 2018 to 2020,] THE [scheduled increase in the}
9 
excise tax on 
REGULAR GASOLINE, 
UNLEADED 
PREMIUM
10 
GASOLINE, AND DIESEL FUEL OIL as imposed in this Section shall be
11 
AUTOMATICALLLY suspended when the average Dubai crude oil price based on
12 
Mean of Platts Singapore (MOPS) for three (3) months prior to the scheduled
13 
increase of the month reaches or exceeds Eighty dollars (USD 80) per barrel."
14 
XX x"


1 
SEC. 2. Repealing Clause. — All laws, decrees, orders, rules and regulations or
2 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby
3 
repealed and modified accordingly.
4 
SEC. 3. Implementing Rules and Regulations. — Such rules and regulations as may
5 
be necessary to implement this Act shall be issue within thirty (30) days of its effectivity.
6 
SEC. 4. Effectivity. —This Act shall take effect fifteen (15) days after its publication
7 
in the Official Gazette.
Approved.