A veteran Philippine business leader is urging the government to temporarily suspend fuel excise taxes to cushion the impact of rising oil prices on micro, small and medium enterprises (MSMEs) and Filipino households amid escalating tensions in the Middle East.
Sergio R. Ortiz-Luis Jr., chairman emeritus of the Philippine Chamber of Commerce and Industry, made the appeal during a live radio interview with Brigada News FM Manila on March 4.
Ortiz-Luis said suspending fuel excise taxes would provide immediate relief to businesses and consumers as global oil prices rise due to geopolitical tensions.
He noted that unlike many countries that subsidize fuel and electricity, the Philippines imposes taxes on these sectors, adding to the cost burden.
“Excise taxes can be removed for now,” Ortiz-Luis said, adding that the government has reported progress in recovering funds lost to corruption-tainted public sector projects.
He said suspending fuel taxes would benefit both rich and poor and could be a more effective response than expanding financial assistance or “ayuda” programs.
Ortiz-Luis warned that micro enterprises—accounting for about 90% of businesses in the Philippines—are likely to be the hardest hit by rising fuel costs.
“If we invest in the micro and small enterprises, they can grow and there won’t be a need for dole-outs,” said Ortiz-Luis, who is also president of the Philippine Exporters Confederation, Inc..
For long-term energy security, he urged the government to revisit proposals for domestic oil exploration and consider nuclear energy as part of the country’s future power mix.
The appeal comes amid escalating tensions in the Middle East following military strikes involving the United States and Israel against Iran in late February, which triggered retaliatory attacks across the region.
Analysts warn the conflict could push global oil prices higher and disrupt supply chains, posing risks for oil-importing economies such as the Philippines. It could also affect remittances from overseas Filipino workers based in the Middle East.