MANILA — Ferdinand Marcos Jr. has approved a temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene for three months to cushion consumers from the continued spike in global oil prices.
The directive, outlined in Executive Order No. 114 signed on April 16, will be subject to monthly evaluation. The move came after the Department of Energy (DOE) confirmed that the average Dubai crude price, based on Mean of Platts Singapore (MOPS), reached USD93.71 per barrel over the past 30 days—well above the USD80 trigger set under Republic Act 12316.
The Development Budget Coordination Committee recommended the full suspension of excise taxes on LPG used as petrochemical feedstock or fuel, as well as kerosene, except when used for aviation.
Under the order, the DBCC will conduct monthly reviews and advise the President on whether to extend, revise, or end the tax break.
The measure also includes an automatic reinstatement of excise taxes once oil prices fall below the USD80 threshold for at least a month or after the suspension period lapses.
Meanwhile, the DOE and the Department of Finance, through the Bureau of Internal Revenue and Bureau of Customs, have been tasked to monitor inventory levels and enforce compliance.
Oil firms are required to submit monthly reports detailing cost components, while both the BIR and BOC must regularly update Congress on the value and volume of petroleum imports.
The executive order takes effect immediately upon publication.
ia/xf
