MANILA — The government could lose up to P43.6 billion in revenue over three months if the suspension of excise taxes on fuel is expanded to include diesel and gasoline, the Department of Finance (DOF) said.

DOF Undersecretary Karlo Adriano told Palace reporters that the currently approved measure—covering liquefied petroleum gas (LPG) and kerosene—would already result in about P4.1 billion in foregone revenues over the same period.

“Now, if you decide to include a suspension of diesel and gasoline [on top of] LPG and kerosene, it will be around PHP43.6 billion losses in three months,” Adriano said.

He added that while higher global oil prices could generate an additional P13 billion in value-added tax (VAT) collections over three months, this would not be enough to offset the losses from a broader suspension.

“Again, if you consider full suspension of diesel and gasoline, if you include it, again, the total losses will be PHP43.6 billion. And your additional VAT collection will be around PHP13 to PHP14 billion. And then there’s a negative revenue loss of around PHP30 billion,” he said.

The excise tax suspension on LPG and kerosene was approved by President Ferdinand R. Marcos Jr. following recommendations from the Development Budget Coordination Committee (DBCC), which is conducting monthly policy reviews amid fluctuating global oil prices.

Adriano said the measure is designed to provide targeted relief to vulnerable households, noting that a significant share of LPG and kerosene consumption comes from low-income families.

Citing Philippine Statistics Authority data, he said about 50 percent of kerosene consumption is from the poorest 38 percent of households, while 56 percent of LPG consumption is from the bottom 70 percent.

He added that the current suspension translates to savings of about P36.95 per 11-kilogram LPG cylinder and P5.60 per liter of kerosene.

The government is also implementing targeted subsidies, including a P10-per-liter fuel subsidy program, instead of a broader tax suspension.