Jeepney drivers across the Philippines are urging the government to suspend fuel excise taxes as soaring oil prices sharply reduce their daily earnings. Transport group Manibela said the recent spike in fuel costs has already slashed drivers’ take-home pay by nearly half, pushing many to the brink of financial hardship.
During a House transportation committee hearing on Wednesday, Manibela chair Mar Valbuena appealed to lawmakers to prioritize suspending excise taxes on petroleum products. According to Valbuena, this measure would provide immediate relief to thousands of drivers struggling with rising fuel expenses.
“As much as possible, we prefer the suspension of excise taxes or at least a reduction in value-added taxes,” Valbuena said. He stressed that a fare increase should only be considered as a last resort because it would also burden commuters already dealing with rising living costs.
The call for tax relief comes as lawmakers consider measures to ease the impact of global oil price shocks. On Tuesday, the House committee on ways and means approved a consolidated bill proposing the temporary suspension of excise taxes on petroleum products during emergencies. The proposal outlines conditions for implementation, including when Dubai crude prices exceed $80 per barrel for at least three consecutive months alongside increases in local fuel prices.
Meanwhile, the Senate committee on ways and means is still finalizing its own version of the measure. Currently, excise taxes on fuel stand at P6 per liter for diesel and P10 per liter for gasoline.
Government economic planners are also preparing for potential economic impacts if global tensions continue to drive oil prices upward. Economic Planning Undersecretary Rosemarie Edillon said authorities are examining two scenarios. The first assumes oil prices could rise to about $99.8 per barrel if the conflict ends soon. The second, more severe scenario assumes Iran closes the Strait of Hormuz, potentially pushing oil prices to as high as $140 per barrel.
Under the worst-case scenario, diesel prices in the Philippines could reach around P96 per liter even before any tax suspension is implemented.
However, the Department of Finance warned that removing fuel excise taxes could result in a revenue loss of about P136 billion for the government in 2026.
For jeepney drivers, the impact is already immediate. Valbuena said drivers who normally earn about P800 daily are now losing between P400 and P500 due to fuel price increases. If oil prices continue rising, their income losses could grow even further.
Transport officials are also reviewing fare hike petitions. The Department of Transportation said a revised recommendation from regulators is expected soon, which could lead to a decision on fare adjustments in the coming days.