President Ferdinand R. Marcos Jr. has issued the executive order suspending for three months the excise taxes on liquefied petroleum gas (LPG) and kerosene that aimed at cushioning households from elevated global oil prices amid an ongoing energy emergency.
Under Executive Order No. 114, signed on April 16, the tax break covers LPG—except when used as a petrochemical feedstock or for motive power—and kerosene, excluding aviation fuel. The measure takes effect immediately and will be reviewed monthly by the Development Budget Coordination Committee, which may recommend its continuation, modification, or termination.
The order states that excise taxes will automatically revert to levels set under the National Internal Revenue Code of 1997 once market conditions stabilize. Specifically, taxes will be reinstated if the one-month average Dubai crude price—based on Mean of Platts Singapore (MOPS)—falls below USD80 per barrel, as certified by the Department of Energy, or upon the lapse of the three-month period.
Data from the DOE showed the 30-day average Dubai crude price reached USD93.71 per barrel as of April 10, supporting the case for intervention. Meanwhile, the Department of Finance, along with the Bureau of Internal Revenue and Bureau of Customs, has been tasked to monitor inventories and submit monthly reports to Congress on volumes and declared values of covered fuel products.
The suspension is expected to reduce LPG prices by about P3.36 per kilogram, or roughly P37 per standard tank, while lowering kerosene costs by P5.60 per liter—offering immediate relief to consumers.
The move follows the enactment of Republic Act 12316, which authorizes the President to suspend or reduce fuel excise taxes for up to three months when global oil prices breach specified thresholds.
