Philippines suspends excise taxes on LPG and kerosene

President Ferdinand Marcos Jr. has issued Executive Order No. 125, temporarily suspending excise taxes on liquefied petroleum gas (LPG) and kerosene. The decision follows a recommendation from the Development Budget Coordination Committee (DBCC) after the Department of Energy (DOE) certified that the average Dubai crude oil price reached US$99.41 per barrel, exceeding the threshold required for tax suspension.

The suspension applies to LPG used for cooking and kerosene, though exceptions remain for LPG used as a raw material for petrochemical production or motive power, and kerosene used as aviation fuel. The tax cut is expected to reduce LPG prices by approximately three pesos per kilogram.

The measure may last for up to three months. The excise taxes will automatically revert if the conditions for suspension are no longer met or when the prescribed period expires. Specifically, the suspension ends a week after the one-month average Dubai crude oil price falls below $80 per barrel. The DBCC and DOE will review the implementation monthly and report findings to the House of Representatives and the Senate.