PRESIDENT Ferdinand R. Marcos Jr. has issued an executive order suspending the excise taxes on specific petroleum products to cushion the effects of the present energy emergency following the recommendation of the Development Budget Coordination Committee (DBCC).
“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 for a period of three months from effectivity of this Order,” President Marcos said in issuing Executive Order No. 114 last April 16.
The President’s issuance stated that the temporary suspension will be subject to a monthly review by the DBCC, which will then recommend to the President the continuation, modification, extension, or termination of the order.
According to the EO, excise tax rates on petroleum products shall automatically revert to the rates prescribed under Section 148 of the National Internal Revenue Code of 1997 (NIRC) without the need for further issuance, in the event of developments in oil supply and pricing.
Tax rates will revert back to previous rates if one week after the one-month average Dubai crude oil price based on Mean of Platts Singapore (MOPS) falls below US$80 per barrel, as certified by the DOE, or upon expiration of the duration provided under Section 2.
The Department of Energy (DOE) and the Department of Finance (DOF), through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), were also directed to conduct an inventory of existing stocks of LPG and kerosene as of the effectivity of the order.
The BIR and the BOC were also mandated to submit to Congress monthly information on the declared value and volume of petroleum products covered by the EO.
The DOE certified on 10 April 2026 that the average Dubai crude oil price, based on MOPS, for the last 30 calendar days has reached US$93.71 per barrel.
Additionally, the DBCC, through Resolution No. 2026-3, recommended the full suspension of excise taxes on LPG and kerosene.
Early this week, President Marcos said he suspended the excise tax levied on LPG and kerosene to provide relief to Filipino families amid the current energy emergency.
The removal of the tax is equivalent to P3.36 per kilo of LPG, or almost a P37 reduction for every tank of LPG, and P5.60 for every liter of kerosene, reducing cooking expenses for Filipino families.
The President signed Republic Act 12316 last month, allowing him to temporarily suspend or reduce fuel excise taxes for up to three months per instance (maximum of one year) when Dubai crude oil prices exceed a certain per-barrel threshold.
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