In a decisive move to shield Filipino consumers from the volatility of the global energy market, President Ferdinand R. Marcos Jr. has officially ordered the removal of excise taxes on Liquefied Petroleum Gas (LPG) and kerosene.
The directive, announced Monday at Malacañang, aims to provide immediate financial breathing room for millions of households currently grappling with a national energy emergency.
The tax suspension is expected to yield significant savings for the average consumer:
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LPG: A reduction of ₱3.36 per kilogram, translating to a savings of approximately ₱37.00 per standard 11kg tank.
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Kerosene: A reduction of ₱5.60 per liter, benefiting those who rely on the fuel for lighting and basic cooking. “Binawasan natin ang buwis sa produktong petrolyo na direktang ginagamit sa pang-araw-araw na buhay,” President Marcos stated. “So, sa ilalim ng kapangyarihan na ibinigay sa atin ng batas, tinanggal ko na ang excise tax sa LPG at sa kerosene.”
The President exercised these powers under the newly enacted Republic Act No. 12316, which allows the Chief Executive to suspend or reduce fuel excise taxes for up to three months—extendable for up to one year—whenever Dubai crude oil prices surpass critical thresholds.
This action follows the signing of Executive Order No. 110 on March 24, which declared a State of National Energy Emergency due to escalating conflicts in the Middle East. The EO empowers the government to:
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Implement a comprehensive fuel and energy allocation plan.
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Enforce strict energy conservation measures.
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Execute the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) framework.
The UPLIFT program serves as the administration’s “whole-of-government” response to the energy crisis. By coordinating the efforts of various departments, the framework ensures that the removal of fuel taxes is complemented by broader support for the transport, food, and industrial sectors to prevent price hikes in basic goods and services.
“Our priority is to ensure that the Filipino family’s kitchen remains fueled and their homes remain lit despite global instabilities,” the President added.
The tax suspension takes effect immediately, with the Department of Energy (DOE) and the Bureau of Internal Revenue (BIR) tasked with monitoring compliance among retailers and distributors to ensure the price cuts are passed directly to consumers.
