MANILA — Energy Secretary Sharon Garin said the government could lose around P170 billion annually if the value-added tax (VAT) on petroleum products is scrapped.

Speaking at a press briefing, Garin noted the estimated impact of removing the tax on fuel.

“How much revenue loss? I’m not from the Department of Finance but I think the estimate was about 170 billion per year ang VAT on petroleum products. So, that’s 170 billion also na mawawala sa collection,” Garin said.

She added that removing VAT on fuel would require an amendment to existing law.

The statement comes as some lawmakers push for tax relief measures to ease the burden of rising fuel prices. However, Marikina Representative Miro Quimbo earlier warned that scrapping VAT on petroleum products could further strain the country’s fiscal position amid ongoing tensions in the Middle East.

Global oil prices have risen following airstrikes launched by United States and Israeli forces on Iran on February 28, which triggered retaliatory actions and heightened instability in the region.

The Philippines sources about 98 percent of its crude oil from the Middle East, making it highly vulnerable to supply disruptions. As a result, fuel prices have exceeded P100 per liter in the past two weeks, placing additional pressure on consumers, particularly those in the transport sector.