President Bongbong Marcos has ordered a three-month suspension of excise taxes on liquefied petroleum gas and kerosene, easing pressure on fuels widely used by households as global oil prices remain elevated during the country’s energy emergency.
The measure is contained in Executive Order No. 114 and took effect upon publication. It applies to LPG and kerosene used for everyday consumption, but excludes LPG used in industrial production or as fuel for vehicles, and kerosene used for aviation.
For households, the impact is immediate and direct. The government said removing the excise tax is equivalent to ₱3.36 per kilo of LPG, or about ₱37 per tank, and ₱5.60 per liter of kerosene. These fuels are used for cooking and basic energy needs, placing the adjustment on routine daily spending.
The order followed certification by the Department of Energy that the average Dubai crude oil price reached $93.71 per barrel over the past 30 days. This exceeded the $80 threshold under Republic Act No. 12316, which allows the temporary suspension or reduction of fuel excise taxes. The Development Budget Coordination Committee recommended the full suspension.
The move follows continued pressure from global oil prices on domestic fuel costs. Under the law, the suspension requires both the price threshold to be breached and a recommendation from the Development Budget Coordination Committee before it can take effect.
The suspension will be reviewed monthly by the Development Budget Coordination Committee, which will recommend whether to continue, modify, extend, or terminate the measure. Excise taxes will automatically revert one week after the one-month average Dubai crude oil price falls below $80 per barrel or upon the expiration of the three-month period.
