By Benjamin Cuaresma
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has restored the excise tax on kerosene and liquefied petroleum gas (LPG) after global crude oil prices fell below the threshold that had triggered the government’s temporary tax suspension.
In an advisory issued Wednesday, the BIR said the excise tax rates prescribed under Section 148 of the National Internal Revenue Code (NIRC) of 1997, as amended, automatically took effect on July 8, without the need for another executive order or administrative issuance.
The bureau said the reimposition followed a certification from the Department of Energy (DOE) showing that the one-month average price of Dubai crude oil, based on the Mean of Platts Singapore (MOPS) from June 1 to June 30, 2026, declined to $79.45 per barrel—below the $80-per-barrel benchmark set under Executive Order No. 114.
Issued by President Ferdinand Marcos Jr. on April 16, Executive Order No. 114 temporarily suspended excise taxes on selected petroleum products for three months to cushion consumers from the impact of soaring global oil prices.
The order, however, also provided that the tax suspension would automatically be lifted once either of two conditions was met: one week after the average Dubai crude price falls below $80 per barrel, as certified by the DOE, or upon the expiration of the three-month suspension period, whichever comes first.
With the latest DOE certification confirming lower global oil prices, the BIR said the restoration of the statutory excise tax rates took effect immediately.
The bureau advised manufacturers, importers, petroleum companies, fuel distributors, and other stakeholders to strictly comply with the reinstated tax rates in all transactions involving kerosene and LPG beginning July 8.
The government expects the resumption of excise tax collections to strengthen state revenues while monitoring developments in the international oil market that could influence future fuel pricing policies.
ia/xf
