Metro Manila, Philippines – The government has rejected proposals to suspend excise taxes on diesel and gasoline, opting instead for targeted relief measures, including the full suspension of taxes on liquefied petroleum gas (LPG) and kerosene.
In a statement, Finance Secretary Frederick Go said the decision followed a review by the Development Budget Coordination Committee (DBCC) as the Middle East conflict weighs down on the economy.
“The president, upon the recommendation of the DBCC, has approved the full suspension of excise taxes on kerosene and liquefied petroleum gas (LPG),” Go said.
The move is expected to result in savings of about ₱36.96 per 11-kilogram LPG cylinder and ₱5.56 per liter of kerosene, easing the cost of cooking fuel and basic energy needs.
Go said the relief is targeted at lower- and middle-income households, citing data showing that 48 percent of kerosene consumption is from the bottom 30 percent of households, while 55.7 percent of LPG users belong to the bottom 70 percent.
“This means the benefits extend beyond the poorest households to also support middle-income families,” he said.
The DBCC, however, did not recommend suspending excise taxes on diesel and gasoline, saying the impact on pump prices would be minimal.
“Any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics,” Go said.
Instead, the government will continue to roll out targeted subsidies for sectors most affected by rising fuel costs, including public transport operators, commuters, farmers and fisherfolk.
The tax adjustments were in line with Republic Act 12316, which allows the president to temporarily suspend or reduce fuel excise taxes when global oil prices exceed a threshold.
Malacañang earlier said Marcos approved the removal of excise taxes on LPG and kerosene as part of the response to a state of national energy emergency.
Officials said the calibrated approach seeks to provide immediate relief to households while preserving revenues to fund essential public services.
