By Robina Asido

Senate Minority Floor Leader Franklin Drilon said President Rodrigo Duterte has the power to suspend collecting the fuel excise tax amid the continued oil price hike.

" The government has a power to suspend that tax. When we created the (Tax Reform for Acceleration and Inclusion Law) law it is clearly indicated that when the oil price exceeded 80 dollars per barrel, the Department of Finance has the power to recommend the suspension of excise tax because it will be difficult for the people," he said in a radio interview on Sunday.

Drilon explained that the crisis between Ukraine and Russia is enough reason for the government to suspend the excise tax.

"When we created this law we did not know that there would be war between Ukraine and Russia. We do not know that we are going to have this kind of situation. That is why these circumstances give the government enough reason to suspend the excise tax on oil products," he said.

News reports said prices of diesel may increase to P12 a liter and gasoline at P7 a liter. Kerosene is expected to go up by P9.80 a liter.

The government is expected to lose P45 billion if the excise tax will be suspended. A House committee approved a bill in November 2021 to suspend and reduce fuel excise tax.

Transport group Piston said it will stage a protest on Monday and Tuesday. It is calling for the repeal of the Oil Deregulation Act and remove the excise tax on fuel and oil.

"This is the need of the country. This is an extraordinary circumstance , we can defend that is our need, it is within the liberal interpretation of the law which will give President Duterte (the reason) to suspend the excise tax," Drilon added.

Drilon added that the government can also use the cash sweep to realign the unused funds of the government to suspend the excise tax on oil products.

"We see from the COA (Commission on Audit) report that there are many unused funds in the Bayanihan 2... it means there is a lot of money that was not used... if there's a will, there's a way," he said.

"There is a need to conduct a cash sweep, where unused funds return to the national treasury. With the use of cash sweep, the president can realign the unused funds to suspend the excise tax, the tax on oil products," he added. DMS