DOE to require oil firms to submit monthly info on fuel costs

The Department of Energy (DOE) said Tuesday the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene would provide direct relief to Filipino households amid elevated global oil prices.

Last Friday, President Ferdinand “Bongbong” Marcos Jr. issued Executive Order No. 125, series of 2026, suspending the collection of excise taxes on LPG and kerosene.

The DOE said the suspension follows its certification that the one-month average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached $99.41 per barrel from August 13 to September 11, 2026, exceeding the $80 per barrel threshold prescribed under Republic Act No. 12316.

The Bureau of Internal Revenue (BIR) subsequently issued Revenue Memorandum Circular No. 100-2026, renewing the suspension of excise taxes on LPG and kerosene pursuant to EO 125 and Republic Act No. 12316, subject to the conditions and limitations prescribed under the Executive Order.

Under EO 125, the Development Budget Coordination Committee (DBCC), in coordination with the DOE, “will review the excise tax suspension monthly and may recommend its continuation, modification, extension, or termination to the President.”

To support the review, the Energy Department said it will “require oil companies to submit monthly information on the cost components of covered petroleum products and provide the required information to the DBCC and Congress in accordance with RA No. 12316.”

The EO 125 clarified that the excise tax on LPG is suspended, “except when used as raw material for petrochemical production or for motive power.”

“The excise tax on kerosene is likewise suspended, except when used as aviation fuel,” it said.

Based on the applicable excise tax rates, the suspension removes P3.36 per kilogram in excise tax on LPG, equivalent to P36.96 for a standard 11-kilogram cylinder, and P5.60 per liter on kerosene, providing direct savings for households that rely on these fuels for cooking and other daily needs.

“For many families, LPG and kerosene are part of the household budget every month. Our priority is to ensure that the tax relief is reflected promptly in the market so that the savings reach Filipino households as quickly as possible,” said Energy Secretary Sharon Garin.

The latest suspension follows the three-month suspension of excise taxes on LPG and kerosene ordered by Marcos in April 2026. —VAL, GMA News