MANILA — President Ferdinand Marcos Jr. on Friday suspended the excise tax on liquefied petroleum gas (LPG) and kerosene after the average price of Dubai crude oil stayed over $80 per barrel for several weeks.
Marcos signed the resolution after a recommendation from the Development Budget Coordination Committee (DBCC) and the Department of Energy (DOE).
The excise tax on these two petroleum products will be suspended “when the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reaches or exceeds $80 per barrel for one month immediately preceding the issuance of an order,” according to the President’s Executive Order No. 125, signed on September 25, 2026.
However, the suspension of excise tax on LPG will not be implemented if the product is being “used as a raw material for production of petrochemical products or used for motive power.”
The same duty suspension for kerosene will also not be applicable when it is “used as aviation fuel.”
The DBCC and the DOE shall have a monthly review of the implementation of the suspension and submit these reports to Congress, the memorandum read.
“Based on these reports, the DBCC may recommend to the President the continuation, modification, extension or termination of the said suspension,” it read.
The excise tax rates on LPG and kerosene will also “automatically revert” to their original rates a week after the average price of Dubai crude oil falls below the $80 threshold or after 3 months since the effectivity of Marcos’ order.
It is expected to take effect immediately after the document’s publication on the Official Gazette or a newspaper of general circulation.
LPG PRICE STILL SEEN RISING
However, the retail price of LPG is still expected to rise despite the suspension of the excise taxes on it.
Based on TRAIN (Tax Reform for Acceleration and Inclusion) Law, the excise tax on LPG is P3.00 per kilogram. A major LPG vendor however estimated that based on current world market prices, prices may rise by P10 to P15 per kilo next month.
Unlike other fuels like gasoline and diesel, which are adjusted weekly, LPG prices are adjusted monthly.
According to the DOE's LPG Monitor, the average price of a standard 11kg tank of cooking gas was P1,025 in the first week of September.
- With a report from Alvin Elchico, ABS-CBN News