By Tracy Cabrera
DILIMAN, Quezon City — Amid fluctuating prices of petroleum products, oil firms are now being required by the Department of Energy (DoE) to submit monthly reports on the cost components of liquefied petroleum gas (LPG) and kerosene as part of the review of the excise tax suspension.
Energy Secretary Sharon Garin explained that the data gathered from the reports would help the government determine whether to continue, modify, extend or terminate the suspension ordered by President Marcos last week on Friday, September 25.
Under Executive Order 125, the excise tax on LPG was suspended, except when used as a raw material for petrochemical production or as motive power. The excise tax on kerosene was likewise suspended, except when used as aviation fuel.
Following the Palace directive, the Bureau of Internal Revenue subsequently issued a memorandum circular renewing the suspension of excise taxes on LPG and kerosene.
Based on the applicable excise tax rates, the suspension lowers LPG prices by ₱3.36 per kilo, equivalent to ₱36.96 for a standard 11-kilo cylinder.
Kerosene prices, meanwhile, will be reduced by ₱5.60 per liter.
According to the DoE, since for many families LPG and kerosene are part of the household budget every month, it is the agency’s priority to ensure that the tax relief is reflected promptly in the market so that the savings reach Filipino households as quickly as possible.
“The suspension of excise taxes follows the DOE’s certification that the one-month average Dubai crude oil price reached US$99.41 per barrel from August 13 to September 11,” Secretary Garin pointed out.
ia/xf
