The government has triggered its new fuel-tax relief mechanism for the second time in five months, as elevated global oil prices again push crude above the statutory threshold for temporary tax cuts.
The Bureau of Internal Revenue (BIR) on Sept. 28 issued Revenue Memorandum Circular No. 100-2026, ordering the renewed suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene under Executive Order No. 125.
The latest relief was triggered after the Department of Energy certified that the one-month average Dubai crude price, based on the Mean of Platts Singapore, climbed to USD99.41 per barrel from Aug. 13 to Sept. 11.
That was nearly USD20 above the USD80-per-barrel threshold set under Republic Act No. 12316, a law signed only in March that allows the President to temporarily suspend or reduce petroleum excise taxes when global crude prices breach the trigger.
The mechanism was first activated in April, when Dubai crude averaged USD93.71 per barrel. The tax suspension ended July 8 after the benchmark fell to USD79.45, below the statutory threshold.
The latest move underscores the mechanism’s role as a temporary shock absorber against oil-price spikes. Under the law, the tax relief ends one week after the monthly crude average falls below USD80 per barrel—or after three months, whichever comes first.
The relief is also targeted. Excise taxes on LPG are suspended except for petrochemical feedstock and motive-power uses, while kerosene used as aviation fuel remains excluded.
Republic Act No. 12316 allows the President to make such petroleum tax adjustments only until Dec. 31, 2028, with each suspension or reduction capped at three months.
