Three-month suspension targets cooking fuels first as pump prices hit record highs
By Benjamin Cuaresma
MANILA, Philippines — April 17, 2026
The government begins suspending excise taxes on liquefied petroleum gas (LPG) and kerosene today, April 17, cutting about P37 off an 11-kg tank and P5.65 per liter of kerosene to ease household costs.
President Ferdinand Marcos Jr. announced Monday that the excise tax on LPG and kerosene is lifted starting Thursday under Republic Act No. 12316, the emergency law giving him power to cut fuel taxes when Dubai crude hits $80/barrel.
“Binawasan natin ang buwis sa produktong petrolyo na direktang ginagamit sa pangaraw-araw na buhay,” Marcos said. “Ibig sabihin magbababa ang gastos sa pagluluto at sa araw-araw na pangangailangan.”
The suspension translates to P3.36 less per kilo of LPG, or roughly P37 off a standard 11-kg tank. Kerosene drops P5.65 per liter. Finance Undersecretary Karlo Adriano said LPG and kerosene were prioritized because they’re “mostly used by the bottom 30% of households”.
Under RA 12316, the suspension can last up to three months. Taxes automatically return if Dubai crude stays below $80/barrel for one month, or when the three-month period lapses — whichever comes first.
The Development Budget Coordination Committee will review the policy monthly.
The price cut applies only to new fuel withdrawals from depots starting April 17. Excise is collected upon entry, so retailers selling existing inventory won’t reflect the lower price until fresh stocks arrive.
Excise taxes on diesel and gasoline remain. Their fate will be discussed at the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) meeting Tuesday, April 14. The DOF warned that suspending all fuel excise taxes from May to December could cost at least P121 billion in revenue.
Malacañang said Marcos will “balance” price relief with the government’s need for revenue to fund programs. The move comes after 13 straight weeks of gasoline hikes and 15 weeks for diesel as Middle East tensions pushed prices to historic highs.
“Malinaw ang proteksiyon sa ating lokal na production. Protektahan natin ang mga consumer, ang mga magsasaka, at ng industriya.” President Ferdinand Marcos Jr
Said
