Philippines suspends LPG and kerosene excise taxes

President Ferdinand Marcos Jr. has ordered the temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene through Executive Order No. 125. The measure aims to protect consumers from rising costs driven by surging global oil prices.

The Department of Energy (DOE) certified that the average price of Dubai crude oil reached $99.41 per barrel between August 13 and September 11, 2026, exceeding the $80-per-barrel threshold required for tax suspension under the law. The Bureau of Internal Revenue is implementing this via Revenue Memorandum Circular No. 100-2026.

The suspension includes LPG, except when used as motive power or as a raw material for petrochemical products. Kerosene is also covered, excluding its use as aviation fuel. Regular tax rates will automatically resume either three months after the order takes effect or one week after the average Dubai crude price falls below $80 per barrel.

The Development Budget Coordination Committee (DBCC) and the DOE will review the suspension monthly and report findings to the House of Representatives and the Senate.