MANILA – The government’s decision to suspend excise taxes on liquefied petroleum gas (LPG) and kerosene is expected to benefit not only low-income households but also middle-class families, according to Finance Secretary Frederick Go.
Go said the tax break will help ease the cost of daily energy needs, particularly for cooking, providing estimated savings of around PHP6.96 per 11-kilogram LPG cylinder and PHP5.56 per liter of kerosene. Small food businesses such as carinderias are also seen to gain from the measure.
The move was ordered by President Ferdinand R. Marcos Jr. as part of efforts to cushion the impact of rising fuel prices driven by tensions in the Middle East.
The Development Budget Coordination Committee (DBCC) recommended the policy following a comprehensive review, emphasizing that the relief measure is designed to support vulnerable sectors.
Data from the Philippine Statistics Authority showed that nearly half of kerosene consumption comes from the bottom 30 percent of households, while LPG is widely used by up to 70 percent of families, indicating that the benefits will extend to middle-income earners.
Go noted that suspending excise taxes on diesel and gasoline would have minimal impact on pump prices due to prevailing market conditions, making the LPG and kerosene tax relief more effective.
Meanwhile, the government will continue providing targeted subsidies to transport workers, farmers, fisherfolk, and commuters affected by rising fuel costs. Authorities also assured continued monitoring of global oil prices to guide future policy adjustments.
ia/xf
