Excise tax suspension on LPG, kerosene lifted as Dubai crude below $80/barrel

The suspension of excise tax collection on liquefied petroleum gas (LPG) and kerosene, which has been in place since April in a bid to ease households’ burden amid global oil price volatility due to the Middle East crisis, has been officially lifted, the Bureau of Internal Revenue (BIR) announced on Wednesday.

The move was triggered by the drop in the average price of Dubai crude last month to below the $80 per barrel threshold under Executive Order No. 114-2026.

In a statement, the BIR advised all concerned manufacturers, importers, petroleum product companies, taxpayers, and stakeholders that the Department of Energy (DO) has certified that the one-month average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS), from June 1 to 30, 2026, was $79.45 per barrel.

“Following the DOE certification, and pursuant to Section 3(i) of Executive Order No. 114, the excise tax rates on kerosene and LPG shall automatically revert to the rates prescribed under Section 148 of the National Internal Revenue Code of 1997, as amended, effective July 8, 2026, without need of further issuance,” the taxman said.

Prior to the suspension, excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law were set at P3.00 per kilogram for LPG and P5.00 per liter for kerosene.

Executive Order No. 114, issued on April 16, 2026, temporarily suspended the excise taxes on specific petroleum products for a period of three months from its effectivity.

The EO also provided that the excise tax rates shall automatically revert to the rates prescribed under the National Internal Revenue Code, without need of further issuance, upon the earlier of: one week after the one-month average Dubai crude oil price based on MOPS falls below $80.00 per barrel, as certified by the DOE; or the expiration of the three-month suspension period. —AOL, GMA News