Under the law, the president may exercise this authority when the average price of Dubai crude oil reaches or exceeds $80 per barrel for one month. The suspension or reduction may apply to selected petroleum products depending on the prevailing conditions.
The law allows either a full suspension or a partial reduction of excise taxes, depending on the situation. However, each implementation is limited to a period of three months. The suspension may be extended if necessary, provided that the total duration does not exceed one year.
The measure also states that excise taxes will automatically return to their previous levels once oil prices decline or after the designated suspension period ends.
In addition, the government is required to submit regular reports to Congress on the effects of the tax suspension. These reports must include its impact on inflation, fuel prices and government revenue collections.
The law aims to reduce the effects of rising oil prices on motorists, commuters and other sectors directly affected by fuel price increases.
Officials said the measure is intended to provide flexibility in responding to fluctuations in global oil markets while monitoring the broader economic effects of any tax adjustments.
