Yap files resolution to suspend fuel excise tax amid Middle East crises

Benguet Lone District Rep. Eric Go Yap filed a joint resolution seeking the immediate suspension of excise taxes on fuel, warning that skyrocketing transport costs are threatening the livelihoods of highland farmers and the country’s food security.

In a House Joint Resolution introduced by Yap, the Benguet solon calls on the President to exercise temporary emergency powers to bypass the standard three-month waiting period and suspend excise taxes on motor fuels under Republic Act No. 10963, also known as the TRAIN Law.

The move comes as the Philippines faces consecutive weekly fuel price hikes, with diesel and gasoline prices surging by as much as P1.90 per liter as of March 2, 2026. These spikes are largely attributed to the closure of the Strait of Hormuz amid escalating military conflict involving the United States, Israel, and Iran.

“This is no longer a question if the prices of petroleum products will rise, it is a matter of when and how we can cope. We call for the immediate suspension of the imposition of excise taxes on gasoline, diesel, and other petroleum products by granting temporary emergency powers to the President to do so, ” said Yap.

The suspension of excise tax on fuels could benefit farmers of Benguet, who supply approximately 80% of the country’s highland vegetables, as the fuel crisis has localized consequences that reach far beyond the pump.

At the La Trinidad Vegetable Trading Post, the primary artery for northern Luzon’s agricultural trade, the impact is already being felt in “bagsakan” areas. Historically, a sharp rise in fuel prices has forced truckers to implement additional delivery charges, often adding at least P0.50 per kilo to transport fees.

Because farmers in remote Benguet municipalities typically shoulder the entire cost of transporting produce from farm to trading post, these increases directly slash their take-home pay as production and logistics costs soar.

Without the tax suspension, many farmers may be pushed further into debt as farmers’ groups in the province have previously noted that high fuel costs, combined with low demand and the influx of smuggled vegetables, create a “chain reaction” that hurts both producers and consumers.

“It is imminent. The effect of high gasoline prices cannot be stressed enough, it will be an economic burden. Direktang pahirap sa tao. We cannot simply allow our transport sector, our commuters, our farmers, almost everyone who consumes petroleum products,” added Yap.

The resolution notes that while excise taxes would be suspended, the State would maintain its right to impose customs duties on petroleum products not used for vehicle power or manufacturing.

“We may have enough supply for now, pero hindi natin alam hanggang kailan matatapos ang gulo sa Iran and the Middle East. We should be proactive and not wait for our oil supply to be depleted,” Yap further said. ###