MANILA — Sen. Sherwin Gatchalian cautioned that suspending fuel excise taxes could significantly affect government revenues needed to fund public programs, saying the measure should remain a last resort.

Gatchalian, who chairs the Senate Committee on Finance, estimated that a suspension could lead to revenue losses of around P16 billion to P18 billion.

“Malaki ang mawawala, mga 16 to 18 billion mawawala. Naintindihan natin yan. At pag nawalan tayo ng koleksyon, wala rin tayong pagkukunan ng ibibigay,” he said.

The senator said the government must carefully balance the need to ease consumer burden with the need to sustain public spending.

He noted that while there is justification for suspending excise taxes on diesel—particularly for the transport and logistics sectors—targeted assistance remains a better option.

“Ako pabor ako sa targeted approach dahil ang targeted, una-una, diretso ‘yan sa mga nangangailangan talaga,” Gatchalian said.

He added that fuel subsidies for public utility drivers and farmers could provide more direct relief to affected sectors.

Gatchalian also pointed out that global oil prices have started to ease, giving policymakers room to consider more calibrated responses.

He suggested alternatives such as fuel discount programs and service contracting schemes, which could deliver faster relief without immediately suspending taxes.

Despite this, Gatchalian said suspending fuel excise taxes on diesel remains an option under review, given its wide use in public transport and freight services.