Finance Secretary Frederick Go has backed removing excise taxes on liquefied petroleum gas (LPG) and kerosene but rejected suspending taxes on gasoline and other fuels, citing an estimated P12 billion monthly revenue loss.
Speaking at a Senate hearing on the Department of Finance’s proposed 2027 budget Tuesday, Go said the government would instead rely on targeted subsidies to help sectors hit by rising fuel prices.
Go said a broad gasoline and diesel tax suspension would be “not progressive” because higher-income consumers who use more fuel would also receive the benefit.
The resolution he signed covers LPG and kerosene, while suspending excise taxes on gasoline and diesel would cost the government an estimated P12 billion in foregone revenues each month.
The move comes after the Department of Energy certified that the average Dubai crude oil price reached $99.41 per barrel from Aug. 13 to Sept. 11, above the $80 threshold for considering fuel tax relief under Republic Act No. 12316.
The law allows the President to temporarily suspend or reduce excise taxes on petroleum products upon the recommendation of the Development Budget Coordination Committee, in coordination with the DOE.
Go said the proposed LPG and kerosene tax relief would help ease household energy costs while allowing the government to preserve revenues for targeted assistance to vulnerable sectors.
