DOF chief signs resolution on suspension of LPG, kerosene excise tax

Finance Secretary Frederick Go said he has signed a resolution on the suspension of the excise tax on liquefied petroleum gas (LPG) and kerosene.

Go made the announcement during the Department of Finance (DOF) Senate budget hearing after Senator Bong Go renewed his call to suspend fuel excise taxes amid the ongoing conflict in the Middle East.

"Matagal ko nang pina-follow up; kanina lang po umabot sa akin kaya pinirmahan ko agad-agad," he said.

The DOF chief, however, said they are not inclined to suspend excise taxes on diesel and gasoline, saying such a move would be “not progressive” and would result in an estimated P12 billion monthly revenue loss.

The government would instead continue to provide targeted subsidies to address the spiraling fuel prices.

Last week, Go said he is awaiting confirmation from the Department of Energy that Dubai crude oil breached the $80-per-barrel threshold on a one-month average, the threshold needed to propose suspending fuel excise taxes.

Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law established excise taxes of P3.00 per kilogram for LPG and P5.00 per liter for kerosene.

President Ferdinand “Bongbong” Marcos Jr. signed Republic Act 12316 into law in March, giving him emergency powers to suspend or reduce the excise tax rate on fuel.

Under the measure, the suspension or reduction may be implemented for up to three months if the average price of Dubai crude oil —based on the Mean of Platts Singapore (MOPS)—reaches or exceeds $80 per barrel for one month. Brent crude prices have hovered around $102 per barrel.

In April this year, President Ferdinand Marcos Jr. removed the excise tax on LPG and kerosene amid high fuel prices in the country.

''Ang katumbas nito ay tatlong piso at tatlumpu’t anim ah how much is this? 3.36. P3.36 ang bawas ng kada kilo ng LPG. Halos P37 sa isang tangke ang mababawasan ng presyo. At P5... sorry, P5.65, P5.65 kada litro ng kerosene,'' he added.

(This is equivalent to P3.36 ... P3.36 less per kilo of LPG. Almost P37 in one tank would be lessened. And P5 per liter of kerosene.)

In July 2026, the suspension of excise tax collection on LPG and kerosene was lifted.

The move was triggered by the drop in the average price of Dubai crude in June to below the $80 per barrel threshold under Executive Order No. 114-2026, which recommended the full suspension of the LPG and kerosene excise tax.—LDF, GMA News