Gov’t Suspends Excise Tax on LPG, Kerosene Amid Soaring Fuel Prices

MANILA, Philippines — The government has officially suspended the excise tax on liquefied petroleum gas (LPG) and kerosene to cushion the impact of surging fuel prices on consumers. President Ferdinand Marcos Jr. issued Executive Order No. 125 on Friday, enacting this measure. The suspension aims to alleviate the financial strain caused by rising prices, particularly for LPG and kerosene, which are essential commodities for many households. However, the excise tax will still apply to LPG when it is used as a raw material for petrochemical production or in other industrial applications. Philippines has been grappling with persistently high fuel prices, driven by global crude oil surges and geopolitical factors. This has led to increased costs for gasoline, diesel, and subsequently, everyday necessities like LPG and kerosene. The ripple effect has also inflated prices of goods and services, contributing to inflationary pressures. The government's decision to suspend excise taxes is seen as part of a broader strategy to curb inflation and preserve the purchasing power of its citizens. Similar measures have been implemented in the past during periods of sharp fuel price increases, and their effectiveness will be gauged by future price movements and consumer behavior. This move is expected to provide some immediate relief to households and small businesses, especially those most affected by the price hikes. Nevertheless, concerns may arise regarding the potential impact on government revenue and whether this could delay the transition to alternative energy sources.