Marcos suspends excise tax on LPG, kerosene - GMA Network

President Ferdinand "Bongbong" Marcos on Friday ordered the suspension of the collection of excise tax on liquefied petroleum gas (LPG) and kerosene.

Marcos issued Executive Order No. 125 in the wake of the high price of crude oil in the international market, which drove local prices of petroleum products to exorbitant levels.

According to Executive Order No. 125, "The excise taxes on LPG, except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended."

"Within fifteen (15) days from the issuance of this Order, and every month thereafter, the DBCC, in coordination with the DOE (Department of Energy), shall review the implementation of the suspension of excise taxes and submit a report to the House of Representatives (HOR) and the Senate, in accordance with RA No. 12316," the EO said.

"Based on these reports, the DBCC may recommend to the President the continuation, modification, extension, or termination of said suspension," it added.

Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, established excise taxes of P3.00 per kilogram for LPG and P5.00 per liter for kerosene.

Marcos signed Republic Act 12316 into law in March, giving him emergency powers to suspend or reduce the excise tax rate on fuel.

Under the measure, the suspension or reduction may 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 hovered around $102 per barrel.

No less than the DOE confirmed as early as September 15 that the $80 per barrel level was reached a month ago.

"As of August 13 to September 11, the average benchmark price of Dubai crude oil reached US $99.41 per barrel. This is already above the threshold set by law," DOE Secretary Sharon Garin said.

Garin added that because of this, the DOE has certified the suspension of the excise tax on LPG and kerosene.

On Tuesday, September 22, Finance Secretary Frederick Go said he has signed a resolution on the excise tax suspension.

Amid the suspension of the excise tax on LPG and kerosene, Go earlier said they are not inclined to suspend excise taxes on diesel and gasoline, saying such a move would be “not progressive” and would result in an estimated P12 billion monthly revenue loss.

The government would instead continue to provide targeted subsidies to address the spiraling fuel prices.

In April this year, Marcos removed the excise tax on LPG and kerosene amid high fuel prices in the country.

In July 2026, the suspension of excise tax collection on LPG and kerosene was lifted.

The move was 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, which recommended the full suspension of the LPG and kerosene excise tax. –NB, GMA News