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Cristina Chi - Philstar.com
April 10, 2026 | 3:59pm
MANILA, Philippines — Makabayan bloc lawmakers called the Marcos administration's P10-per-liter fuel subsidy for public utility vehicles "consuelo de bobo" — a token gesture — made to keep government spending low rather than deliver relief to transport workers being battered by the oil crisis.
Reps. Antonio Tinio (ACT Teachers), Sarah Elago (Gabriela Partylist) and Renee Co (Kabataan Partylist) said in a joint statement Friday, April 10, that the subsidy's cap of 150 liters per week works out to roughly P300 a day per jeepney, or about P6,000 a month.
This, according to the bloc, is grossly inadequate, given drivers are now dealing with fuel costs that have more than tripled since February, and which have also driven up the prices of basic goods.
"We are alarmed that the Marcos Jr. administration appears to be abandoning any plan to suspend excise taxes on petroleum, and is instead leaning on a limited package centered on a P10-per-liter subsidy," the bloc said.
The three lawmakers said the real issue was the government's insistence on spending as little as possible while continuing to collect billions in excise taxes and VAT from fuel that Filipinos have no choice but to buy.
Fiscal gap
The bloc estimated the subsidy program would cost the government between P4.8 billion and P5.2 billion over four months — a sum they say is modest next to the revenue the state continues to draw from oil taxes as pump prices remain elevated.
They cited figures from the IBON Foundation showing that oil company windfall revenues reached P47 billion in March alone.
On the other side of this argument are finance officials who have warned that a full suspension of excise taxes could cost the government P136 billion if implemented from May to December. This includes a potential P121.4 billion in foregone excise revenue and P14.6 billion in lower VAT collections.
That estimated figure is seen as a central reason the administration has held off on using the emergency powers Congress granted it in March to suspend the excise tax on petroleum products amid the Middle East conflict.
The law, signed March 25, allows President Ferdinand Marcos Jr. to suspend or reduce fuel excise taxes when Dubai crude oil exceeds $80 per barrel for one month. Dubai crude currently sits at around $117 per barrel — well above the trigger — the president has said he is waiting for the "best time" to act.
Delay in action
This delay has drawn criticism from beyond the opposition in the House. Sen. Bam Aquino said in a hearing earlier this week that the suspension should have been enforced as early as two weeks ago.
Palace Press Officer Claire Castro earlier said the Development Budget Coordination Committee submitted its recommendation to Marcos on April 7, but Malacañang has not disclosed its contents or whether a decision has been reached.
In his video message on Thursday announcing the fuel subsidy and a separate service contracting program for PUV drivers, Marcos made no mention of the excise tax suspension.
The Makabayan bloc said the omission spoke for itself. Excise taxes and VAT on fuel are regressive, the lawmakers argued — they fall hardest on commuters, small operators, and the transport of goods, the same people the subsidy claims to help.
"The crisis demands comfort, not alms meant for press releases," the bloc said in Filipino. "What's needed is real livelihood support, not a showcase program to preserve excessive tax collections."
Where we are now. The country has been hit by 15 consecutive weeks of diesel price increases. Since the conflict in the Middle East erupted on February 28, diesel has climbed from around P48 per liter to as high as P164.70 — a cumulative increase of P116.70. Gasoline has roughly doubled over the same stretch, rising from about P49 to P120.80.
As of April 7, diesel in Metro Manila ranged from P148.90 to P155.20 per liter, depending on brand.
A slight rollback is expected next week — diesel may fall by P5.50 to P6.50 per liter — after the announcement of a two-week ceasefire between the United States and Iran. But that would scrape off only a fraction of the overall increases, and the ceasefire's durability remains uncertain.
The Philippines imports roughly 98% of its crude oil, most of it from the Middle East. The closure of the Strait of Hormuz — a chokepoint for about a fifth of global oil supply — has been the primary driver of the price shock.
