SPEAKER Faustino “Bojie” G. Speaker Faustino “Bojie” G. Dy III held a meeting on Wednesday where economic managers discussed options like possibly stopping or lowering fuel excise taxes and cutting non-essential maintenance and operating expenses (MOOE) by at least 20 percent, as a way to deal with rising oil prices that could increase inflation and slow down economic growth.
The policy options were shared during a meeting of 13 important committees in the Legislative Energy Action Development (LEAD) Council, which followed Speaker Dy’s guidance to ensure that immediate help and long-term changes match the government’s response to the changing global oil prices.
Officials from the Department of Finance (DOF), Department of Budget and Management (DBM), and Department of Economy, Planning and Development (DEPDev) said the administration’s response is anchored on a whole-of-government approach under President Ferdinand R. Marcos Jr., combining targeted interventions, tax policy tools, and cost-reduction measures to protect households and critical sectors.
Finance Undersecretary Karlo Fermin Adriano said the government is prioritizing calibrated support over broad subsidies.
“The government must balance the urgent need to provide support to the most vulnerable sectors with the equally critical responsibility of maintaining fiscal discipline,” Adriano said.
He said economic managers have assessed options to ease fuel costs, including possible adjustments to petroleum excise taxes.
“The economic managers have undertaken rigorous assessment of the macroeconomic and fiscal implications of the crisis and have submitted recommendations to the President for the suspension or reduction of excise tax on fuel,” he said.
Adriano added that efforts are also focused on limiting the secondary impact of rising fuel prices by reducing logistics and transaction costs and supporting key sectors such as agriculture and transport.
Acting DBM Secretary Rolando Toledo said agencies are being directed to realign spending to support these measures.
“In support of the objectives of Memorandum Circular (MC) 114 and Executive Order (EO) 110, the DBM recommends mandating all departments and agencies to save at least 20 percent from non-essential MOOE,” Toledo said.
EO 110 declares a national energy emergency and establishes the Unified Package for Livelihoods, Industry, Food, and Transport, a framework to ensure the steady supply of essential goods while coordinating government and private sector response and balancing short-term relief with long-term energy security.
MC 114, meanwhile, directs agencies to adopt strict energy conservation measures, including reducing electricity and fuel use and limiting non-essential spending to free up resources for priority programs.
DEPDev Secretary Arsenio Balisacan warned of mounting risks if oil prices remain elevated.
“In the worst scenario, inflation could be as high as 6 to 7 percent if oil prices were to stay at $150 per barrel. And that’s quite high. It’s just like going back to the high inflation of the early 2023 when inflation was hitting at 6 to 8 percent,” he said.
“These assumptions may be a little bit scary, but I think they’ll be more tempered,” he added.
Balisacan said the oil shock could also slow economic growth from earlier projections of 5 to 6 percent, as higher fuel costs dampen demand and raise production and transport expenses.
He said the projections are meant to guide policy decisions, particularly in protecting domestic demand and cushioning vulnerable sectors.
The LEAD Council hearing, presided over by Committee on Ways and Means chair and Marikina City Rep. Miro Quimbo, is equipping lawmakers with concrete policy options to respond decisively to the crisis.
The House is moving to align legislative measures with the executive’s response, focusing on targeted relief, market interventions, and structural reforms to protect Filipinos while sustaining economic stability.
