National

PBBM TEMPORARILY SUSPENDS EXCISE TAX ON LPG

admin September 27, 2026

PRESIDENT Ferdinand R. Marcos Jr. on Friday issued Executive Order No. 125 temporarily suspending excise taxes on liquefied petroleum gas (LPG) and kerosene amid elevated global crude oil prices.

President Marcos’ EO 125 stated that the excise taxes on LPG and kerosene are fully suspended, subject to specific exemptions on their use, following a recommendation by the Development Budget Coordination Committee (DBCC).

The measure followed the Department of Energy’s certification that the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS) over the preceding 30 calendar days, had reached US$99.41 per barrel.

On September 25, President Marcos issued EO 125, “Temporarily Suspending the Excise Taxes on Specific Petroleum Products Pursuant to Section 148 of Republic Act No. 8424 or the National Internal Revenue Code of 1997, as Amended.”

“The excise taxes on LPG (liquefied petroleum gas), 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,” the executive order stated.

The DBCC, in coordination with the DOE, shall review the implementation of the suspension of excise taxes 15 days from the issuance of the EO, and every month thereafter, and submit a report to the House of Representatives and the Senate.

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

The DOE and the Department of Finance (DOF), through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), were directed to conduct an inventory of existing stocks of LPG and kerosene as of the effectivity of the order.

Last September 11, the DOE certified that the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) covering the last 30 calendar days has reached US$99.41 per barrel.

This prompted the DBCC, through Resolution No. 2026-11, to recommend full suspension of excise taxes on LPG with certain exceptions.