MANILA – President Ferdinand R. Marcos Jr. has temporarily suspended excise taxes on liquefied petroleum gas (LPG) and kerosene amid elevated global crude oil prices.

Marcos issued Executive Order No. 125 on Sept. 25, suspending the excise taxes pursuant to Section 148 of the National Internal Revenue Code of 1997, as amended.

“The excise taxes on LPG (liquefied petroleum gas), except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended,” the order stated.

The suspension followed a recommendation from the Development Budget Coordination Committee (DBCC), after the Department of Energy (DOE) certified that the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) over the preceding 30 calendar days had reached US$99.41 per barrel.

Under the order, the DBCC, in coordination with the DOE, will review the implementation of the tax suspension 15 days after the issuance of the EO and every month thereafter.

The DBCC will submit its reports to the House of Representatives and the Senate and may recommend to Marcos the continuation, modification, extension, or termination of the suspension.

The DOE and Department of Finance (DOF), through the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), were also directed to conduct an inventory of existing LPG and kerosene stocks as of the effectivity of the order.

The DOE issued the certification on Sept. 11, prompting the DBCC, through Resolution No. 2026-11, to recommend the full suspension of excise taxes on LPG, subject to the specified exemptions.