RMC No. 56-2026: Circularizing the full text of Republic Act No. 12316, “An Act Authorizing the President to Suspend or Reduce Excise Tax on Petroleum Products, Amending for the Purpose Section 148 of the National Internal Revenue Code of 1997, as Amended”

Key points

1. Scope of power. The suspension or reduction may apply to specific petroleum products, either as a full suspension or a partial reduction of the applicable Excise Tax rates, as prevailing conditions warrant.
2. Duration. Any suspension or reduction lasts for a period not exceeding three (3) months, and the aggregate period may not exceed one (1) calendar year.
3. Automatic reversion. Excise Tax on fuel products reverts automatically to the Section 148 rates, with no further legislative or executive action, on the earlier of two conditions: one (1) week after the one (1)-month average Dubai crude oil price (MOPS) falls below Eighty US dollars (USD 80) per barrel as certified by the DOE, or after three (3) months.
4. Sunset of the power. The President may exercise this power only until December 31, 2028.

Who is affected

• Producers and importers of petroleum products

Deadlines and effectivity

• Each suspension or reduction: not more than three (3) months
• Aggregate period: not more than one (1) calendar year
• Presidential power exercisable until December 31, 2028
• Issued: May 26, 2026