Metro Manila, Philippines – The Bureau of Internal Revenue temporarily suspended the excise taxes on liquefied petroleum gas (LPG) and kerosene because of consistently high oil prices triggered by the prolonged Middle East conflict.
The directive suspended the ₱3.36 per kilogram tax on LPG and ₱5.60 per liter tax on kerosene.
Pursuant to Executive Order 125, the Department of Energy issued its certification for the tax relief after the one-month average Dubai crude oil price from Aug. 13 to Sept. 11 exceeded the $80.00 per barrel threshold based on the trading platform Mean of Platts Singapore.
The recorded price per barrel during that period reached $99.41.
Under the law authorizing the president to adjust excise taxes, once the month-long average price of Dubai crude oil goes beyond $80 per barrel, a temporary excise tax suspension will be implemented as certified by the DOE.
Excise tax rates will automatically revert either a week after the price of crude oil falls below $80 per barrel, upon DOE certification, or three months after the EO date of effectivity.
Taxes will remain on LPG used as raw material for the production of petrochemical products or for motive power. Kerosene used for aviation fuel is also excluded.
The BIR implemented a similar tax relief for LPG and kerosene on April 17 before lifting it on July 8.
