Philippines suspends LPG and kerosene excise taxes

The Philippine government has implemented tax relief for liquefied petroleum gas (LPG) and kerosene to mitigate the impact of rising global oil prices. Finance Secretary Frederick Go signed a resolution suspending the excise tax on these two fuels, which is expected to reduce the cost of a standard LPG tank by approximately ₱37 and kerosene by ₱5.65 per liter.

While LPG and kerosene taxes are suspended, the Department of Finance has decided not to extend similar relief to gasoline and diesel. Officials argued that suspending taxes on transport fuels would be “not progressive,” as it would primarily benefit higher-income motorists while costing the government an estimated ₱12 billion in monthly revenue. Instead, the government intends to use those funds for targeted subsidies for vulnerable sectors.

The move follows certification from the Department of Energy that Dubai crude prices reached a one-month average of $99.41 per barrel between August 13 and September 11. This exceeds the $80-per-barrel threshold required under Republic Act 12316 to trigger potential fuel tax suspensions. The Development Budget Coordination Committee is currently evaluating further recommendations regarding broader fuel tax relief.