The Development Budget Coordination Committee (DBCC) said suspending excise taxes on diesel and gasoline would likely deliver only modest and short-lived relief at the pump, as global oil prices remain driven by external forces, including ongoing tensions in the Middle East.
After its review, the DBCC said any gains from a broad-based fuel tax pause could be marginal and easily offset by volatility in international markets. Instead, the committee pushed for a more targeted strategy designed to provide clearer and more immediate benefits to households most vulnerable to rising energy costs.
Acting on the DBCC’s recommendation, President Ferdinand Marcos Jr. approved the full suspension of excise taxes on kerosene and liquefied petroleum gas (LPG), fuels commonly used for cooking and other basic household needs. The move is expected to reduce LPG prices by about P36.96 per 11-kilogram cylinder and kerosene prices by P5.56 per liter.
President Marcos didn’t close the door on the suspension of excise tax on other fuel products, but said it will be subjected to monthly review.
Citing data from the Philippine Statistics Authority, the DBCC noted that nearly half of kerosene consumption comes from the bottom 30 percent of households, while 55.7 percent of LPG users fall within the bottom 70 percent—underscoring that the relief is largely directed at lower- and middle-income families.
To ease transport-related cost pressures, the government will continue rolling out targeted subsidies for public utility drivers and operators, alongside assistance for commuters, farmers, and fisherfolk.
The DBCC said this calibrated policy mix enables the government to deliver timely and focused support while preserving fiscal discipline, leaving room to adjust as global oil market conditions evolve.
