MANILA, Philippines — President Ferdinand Marcos Jr. has directed the temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene to mitigate the impact of surging global oil costs on consumers.
The measure, detailed in Executive Order (EO) No. 125 signed on Friday, September 25, comes after the Department of Energy (DOE) confirmed that average Dubai crude prices reached $99.41 per barrel over the past 30 days based on the Mean of Platts Singapore.
Under the directive, excise tax collections are fully halted for LPG, excluding instances where it is utilized for motive power or as a raw material in petrochemical production. The tax suspension also applies to kerosene, except when used as aviation fuel.
The executive action was recommended by the Development Budget Coordination Committee (DBCC) in coordination with the DOE after crude benchmarks exceeded the statutory threshold defined under Republic Act (RA) No. 12316.
The law authorizes the Chief Executive to reduce or pause fuel excise taxes whenever Dubai crude averages $80 or more per barrel over a one-month window.
The DBCC is mandated to review the tax pause within 15 days of its issuance and conduct monthly evaluations thereafter. The panel will brief both houses of Congress and advise the President on whether to maintain, alter, extend, or lift the suspension.
To monitor compliance, the DOE has been instructed to collect monthly breakdowns of cost components from petroleum companies for the covered products throughout the suspension period. These reports will be shared with the DBCC and the House of Representatives.
In addition, the Department of Finance—via the Bureau of Internal Revenue and Bureau of Customs—alongside the DOE, will issue implementing guidelines to enforce the order.
The executive order takes effect immediately following its publication in a newspaper of general circulation or the Official Gazette.