Excise Tax on LPG, Kerosene Reinstated as Dubai Crude Falls Below $80/Barrel

The suspension of excise tax collection on liquefied petroleum gas (LPG) and kerosene has been officially lifted, with the Bureau of Internal Revenue (BIR) announcing that the taxes will be reinstated effective July 8, 2026. This move comes after the average price of Dubai crude oil dropped below the $80 per barrel threshold last month. The Department of Energy (DO) certified that the one-month average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), from June 1 to 30, 2026, was $79.45 per barrel. Consequently, as per Executive Order No. 114-2026, the excise tax rates on kerosene and LPG will automatically revert to the rates prescribed under Section 148 of the National Internal Revenue Code of 1997, as amended. Prior to the suspension, which began in April 2026 under Executive Order No. 114, excise taxes were P3.00 per kilogram for LPG and P5.00 per liter for kerosene, as mandated by the Tax Reform for Acceleration and Inclusion (TRAIN) Law. The EO had stipulated that the suspension would be lifted and taxes reinstated automatically once the one-month average Dubai crude oil price fell below $80.00 per barrel, as certified by the DOE; or upon the expiration of the three-month suspension period. The reinstatement of these excise taxes is expected to place additional financial pressure on households and small businesses, particularly those reliant on LPG for cooking and kerosene for lighting and other uses. Historically, increases in these fuel prices have had a ripple effect on the cost of goods and transportation in the Philippines, contributing to inflationary pressures.