Philippines May Suspend Fuel Taxes Again as Crude Oil Prices Surge

MANILA, Philippines — The Department of Energy (DOE) has certified that Dubai crude oil prices have exceeded the $80-per-barrel threshold, which could lead to the suspension of excise taxes on kerosene and liquefied petroleum gas (LPG) again. "The DOE finally certified the Dubai crude prices. I am immediately endorsing [to] the Development Budget Coordination Committee (DBCC) the suspension of excise taxes on kerosene and LPG," Finance Secretary Benjamin Diokno said in a statement on Tuesday. According to Diokno, the DOF is pushing for the revival of tax relief measures to cushion the impact of soaring crude oil prices on consumers. The Philippines imports most of its oil, making it vulnerable to global price swings. The suspension of excise taxes on fuel products has been used in the past to provide relief to consumers during periods of high oil prices. This move is expected to help temper inflation, which has been a concern for the Philippine economy. Higher fuel prices contribute to increased transportation costs, which then ripple through the economy, affecting the prices of various goods and services. The DOE's certification is a key step in the process of suspending these taxes. The DBCC, which includes the Department of Budget and Management and the National Economic and Development Authority, will then review the recommendation.