Philippines to Reinstate Fuel Excise Taxes as Crude Prices Ease

MANILA, Philippines — The government has lifted the suspension of excise taxes on kerosene and liquefied petroleum gas (LPG) after global crude prices eased, a move that previously sought to cushion households from surging costs amid the Middle East war. In a statement, the Bureau of Internal Revenue said excise tax rates on kerosene and LPG have automatically reverted to levels prescribed under Section 148 of the National Internal Revenue Code effective yesterday, following certification from the Department of Energy (DOE). The BIR advised all concerned manufacturers, importers, petroleum product companies, taxpayers and stakeholders that DOE certified that the one-month average price of Dubai crude fell to $79.45 per barrel from June 1 to 30, based on the Mean of Platts Singapore benchmark. This was below the $80-per-barrel trigger that allowed the temporary suspension of excise taxes under Executive Order 114. EO 114, issued on April 16, temporarily suspended the excise taxes on specific petroleum products for a period of three months from its effectivity. The order provides that the excise tax rates shall automatically revert upon Dubai crude’s one-month average dropping below $80 per barrel, as certified by the DOE or upon the expiration of the three-month suspension period. The reinstatement comes ahead of the July 17 lapse of the tax suspension. The three-month suspension has affected the Bureau of Customs’ revenue but has offered relief to consumers facing high living costs. The Philippines, which imports its oil needs, was placed under a state of national energy emergency for one year following the surge in global oil prices triggered by the was between the United States and Iran.