Cusi: Duterte to meet with DOE, DOF execs to discuss proposal to suspend fuel excise tax

Officials from the Department of Energy (DOF) and the Department of Finance (DOF) will meet with President Rodrigo Duterte on Tuesday, March 15, to discuss the call to suspend the fuel excise tax amid the increasing oil prices, according to Energy Secretary Alfonso Cusi on Monday.

"The President is calling (for) a meeting tomorrow," Cusi told CNN Philippines.

"We're going to discuss with DOF, asking for the deferment or the suspension of the excise tax," Cusi added.

Earlier, the DOF has expressed opposition to calls for the suspension of excise taxes on petroleum products, saying that this may result in a revenue loss amounting to P131.4 billion for 2022 alone. The agency said this may affect the government’s budget for COVID-19 recovery measures.

The DOE, for its part, had previously asked Congress' help to grant the agency an authority to suspend excise tax on fuel in the face of the continued rise in pump prices.

Acting presidential spokesperson Martin Andanar has said it is Duterte who will decide on recommendations to suspend the fuel excise tax.

Meanwhile, Cusi said the government is also considering increasing the assistance that will be given to the transport and agriculture sector as well as expanding the coverage of those receiving aid.

Cusi said this means they will check how the government will help other sectors, including households, which are affected by the hike on prices.

"So ngayon sinasabi natin, pinagaaralan natin (We are studying) na maybe we can increase that and then we will expand the coverage not only for transport or agriculture but other sectors that are really vulnerable..." Cusi said.

"We're going to take that up with our economic managers, DOF, how it will affect if we increase again the ayuda," he added.

The DOE has called on local oil firms to look into measures that would ease the successive increases of domestic pump prices in a bid to relieve its impact on consumers.

The agency said oil companies could consider implementing the increases on a staggered basis.

The government has allocated some P2.5 billion for public utility driver fuel subsidies, while the Department of Transportation has a service contracting program that pays drivers in exchange for providing services to commuters for free. — Anna Felicia Bajo/RSJ, GMA News