President Ferdinand “Bongbong” Marcos Jr. may issue the executive order whether to suspend or reduce the excise tax rate on petroleum products by April 12 or April 13, the Department of Finance (DOF) said Thursday.

During the hearing of the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) committee, Finance Undersecretary Karlo Fermin Adriano explained that the law only takes effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.

Marcos Jr. signed Republic Act No. 12316, authorizing him to either reduce or suspend oil excise taxes in the country, as the people continues to grapple with double-digit hikes in oil prices.

Under the measure the Chief Executive is allowed to adjust taxes on petroleum products “upon the recommendation of the Development Budget Coordination Committee (DBCC),” provided that “the average Dubai crude oil price… reaches or exceeds $80 per barrel for one month.”

The law limits any suspension or reduction to “a period not exceeding 3 months.”

“The excise tax on fuel products shall revert automatically to the rates provided under this section, without need for further legislative or executive action” one week after the one month average of Dubai crude oil prices fall below $80 per barrel or after 3 months, whichever comes first.

This power, however, will only take effect 15 days after its publication in a newspaper, and may only be exercised until December 31, 2028.

The executive department is also mandated to report to Congress about the following:

– factual basis and policy goals for the suspension or reduction of excise taxes

– Estimated foregone revenues, including social benefits

– Expected impact on inflation and fuel prices

– Cost-benefit analysis

– Assessment of possible market distortions, leakages and unintended consequences

“The report shall include a recommendation on whether the suspension or reduction of excise taxes should be maintained, modified or lifted, and shall form part of the basis for any continued suspension or reduction,” the law read.

“During the suspension or reduction of excise tax… oil companies shall submit to the Department of Energy monthly information on the cost components of the price of petroleum products sold,” it read.

“The Bureau of Internal Revenue and the Bureau of Customs shall likewise submit to Congress monthly information on the declared value and volume of petroleum products… suspended or reduced.”

In an earlier statement, Marcos Jr. said that his administration will study and determine the best time to implement this new power.

“Ngayon, titingnan ngayon natin kailan ang pinakamagandang oras, when is the best time to use that new authority because there are conditions within the law that have to be satisfied. But nonetheless, we are trying to determine,” he said.

“Ang mahirap talaga dito pabago-bago ang presyo,” he added.

The move comes nearly a month after Iran blockaded portions of the Strait of Hormuz — where 20 percent of the world’s oil supply passes through — in retaliation against air strikes from US and Israeli forces.

While Marcos Jr. certified the measure as urgent earlier this month, the President noted that its passage took some time due to “very complicated calculations.”

Analysts earlier estimated that the Philippines may lose at least P100 billion in government revenue should the President suspend taxes on oil imports.

Aside from the reduction of the oil excise tax, the Marcos Jr. administration has also provided cash aid and fuel subsidies to transport sector workers, and slashed by half the price of two train lines in the capital region.

But transport groups described these efforts as “band aid solutions” and are instead calling for the removal of the value-added tax on oil to further temper the steep spikes in fuel prices.