President Bongbong Marcos ordered the suspension of excise tax on liquefied petroleum gas and kerosene, targeting two fuels tied directly to daily household spending as global oil prices remain volatile.
The announcement was made in Malacañang, where Marcos said the move was carried out under Republic Act 12316. The law allows the President to suspend or reduce excise taxes on petroleum products when global oil prices reach set thresholds, giving the government a mechanism to respond to external price pressures.
The decision centers on fuels used inside the home. LPG is a primary source for cooking in many households. Kerosene supports basic daily needs, particularly among lower-income families. Both are exposed to global supply disruptions, including tensions in the Middle East, which continue to affect fuel prices.
Marcos outlined the expected price impact. “Binawasan natin ang buwis sa produktong petrolyo na direktang ginagamit sa pangaraw-araw na buhay. So, sa ilalim ng kapangyarihan na binigay sa ating mga batas, tinanggal ko na ang excise tax sa LPG at sa kerosene. Ang katumbas nito ay P3.30., P3.36 ang bawas ng kada kilo ng LPG. Halos P37.00 sa isang tanke ang mababawasan ng presyo,” he said.
He added, “At P5.65 kada litro ng kerosene. Ibig sabihin magbababa ang gastos sa pagluluto at sa araw-araw na pangangailangan.”
Reported figures point to a P3.36 reduction per kilo of LPG and P5.60 per liter of kerosene. The effect lands on household budgets, easing costs tied to cooking and daily consumption.
The move forms part of the government’s broader response under the Unified Package for Livelihoods, Industry, Food, and Transport program, which includes fuel subsidies for public utility vehicles and service contracting for commuters. Possible adjustments to excise taxes on gasoline and diesel will be discussed in a UPLIFT meeting.
