Philippines Approves Suspension of Excise Tax on LPG and Kerosene

Finance Secretary Frederick Go announced that he has signed a resolution on the suspension of the excise tax on liquefied petroleum gas (LPG) and kerosene. This decision comes after Senator Bong Go renewed his call for the suspension of fuel excise taxes amid the prolonged conflict in the Middle East during a Department of Finance (DOF) Senate budget hearing. "I have been following this up for a long time; it just reached me today, so I immediately signed it," stated Secretary Go. However, the Finance Secretary indicated that the government is not inclined to suspend excise taxes on diesel and gasoline, explaining that such a move would be "not progressive" and would result in an estimated monthly revenue loss of P12 billion. Instead, the government plans to continue providing targeted subsidies to address the escalating fuel prices. Last week, Go mentioned that he was awaiting confirmation from the Department of Energy that the average price of Dubai crude oil had breached the $80 per barrel threshold on a one-month average, which is the requirement to propose the suspension of fuel excise taxes. In the Philippines, excise taxes of P3.00 per kilogram for LPG and P5.00 per liter for kerosene were established under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law. President Ferdinand "Bongbong" Marcos Jr. was granted emergency powers to suspend or reduce fuel excise tax rates under Republic Act 12316, signed into law in March. Under this law, the suspension or reduction can be implemented for up to three months if the average price of Dubai crude oil—based on the Mean of Platts Singapore (MOPS)—reaches or exceeds $80 per barrel for one month. Brent crude prices have been hovering around $102 per barrel. In April of this year, President Ferdinand Marcos Jr. had previously removed the excise tax on LPG and kerosene amid high fuel prices in the country. The previous measure resulted in a reduction of P3.36 per kilogram for LPG and P5.65 per liter for kerosene. However, the suspension of excise tax collection on LPG and kerosene was lifted in July 2026, triggered by the drop in the average price of Dubai crude in June to below the $80 per barrel threshold under Executive Order No. 114-2026. Source: GMA Money Philippines