Senator Bam Aquino has reminded the government that the Tax Reform for Acceleration and Inclusion (Train) Law automatically suspends excise taxes on petroleum products when global oil prices hit $80 per barrel, as international prices approach that threshold. The warning comes as local oil companies announced a near-immediate increase in gasoline and diesel prices on Tuesday, March 3, 2026, adding to the financial strain on Filipino households.

Automatic Suspension Clause in Train Law

Aquino emphasized that the safeguard mechanism he advocated for during the law’s deliberations allows for the automatic suspension of excise taxes on fuel products if the average global oil price reaches $80 per barrel over a three-month period. He reiterated this during a public statement, stating that the mechanism is designed to mitigate the impact of rising fuel costs on consumers.

“In the safeguard that we pushed under the Train Law, the automatic suspension of excise tax collection on oil is allowed once the price of oil in the world market exceeds $80 per barrel,” Aquino said. His comments follow a warning from local oil companies that gasoline prices are set to rise by P1.90 per liter and diesel by P1.20 per liter on Tuesday, March 3.

Pressure on Consumers and Economy

The anticipated price hike adds pressure on consumers already dealing with the rising cost of living. Aquino warned that higher oil prices could trigger a domino effect, pushing up the cost of food and other basic goods and further straining Filipino households.

“This suspension will help reduce the burden of the anticipated increase in oil prices due to the conflict in the Middle East,” he said. Tensions in the Middle East have been a key driver of global oil prices, which have been steadily rising in recent months.

Aquino is expected to file a resolution urging the government to implement the tax suspension if the $80-per-barrel threshold is met. He also highlighted the potential economic consequences of failing to act, including further inflationary pressures and increased hardship for low- and middle-income Filipinos.

Proposed Reforms to Ease Burden

During the 20th Congress, Aquino filed Senate Bill 265, which seeks to abolish the excise taxes imposed under the Train Law on diesel, kerosene, liquefied petroleum gas (LPG), fuel oil, and unleaded gasoline. He argued that these taxes have contributed to higher fuel prices, which in turn cascade into increased costs for goods and services.

“These taxes have contributed to higher fuel prices, which in turn cascade into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos,” Aquino said. If enacted into law, the measure would provide immediate relief to commuters and drivers, particularly those operating diesel-powered jeepneys, buses, and delivery vehicles.

He added that the removal of excise taxes would lower household expenses for cooking fuel and lighting, especially in poor and off-grid communities, and ease the burden on producers and small businesses by reducing fuel and logistics costs. “It will also help stabilize the prices of basic goods and services amid persistent inflationary pressures,” Aquino said.

Aquino is also championing other measures aimed at cushioning the impact of the high cost of living, including a bill seeking to remove the 12 percent value-added tax on electricity and another measure proposing institutionalized subsidies for commuters and students.

The senator’s push for these reforms comes at a time when inflationary pressures are mounting, and the government is under increasing pressure to find ways to ease the economic burden on ordinary Filipinos. With oil prices near the critical $80-per-barrel threshold, the potential for automatic tax suspension under the Train Law is a key point of focus for both lawmakers and the public.