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MEDIA RELEASE
29 September 2026
DOE Moves to Implement Excise Tax Suspension on LPG, Kerosene
The Department of Energy (DOE) welcomed President Ferdinand R. Marcos Jr.’s issuance of
Executive Order No. 125, s. 2026 suspending excise taxes on liquefied petroleum gas (LPG)
and kerosene, providing direct relief to Filipino households amid elevated global oil prices.
Under EO 125, the excise tax on LPG is suspended, except when used as raw material for
petrochemical production or for motive power. The excise tax on kerosene is likewise
suspended, except when used as aviation fuel.
The Bureau of Internal Revenue (BIR) subsequently issued Revenue Memorandum Circular
No. 100-2026, renewing the suspension of excise taxes on LPG and kerosene pursuant to EO
125 and Republic Act No. 12316, subject to the conditions and limitations prescribed under the
Executive Order.
The suspension follows the DOE’s certification that the one-month average Dubai crude oil
price based on the Mean of Platts Singapore (MOPS) reached US$99.41 per barrel from 13
August to 11 September 2026, exceeding the US$80 per barrel threshold prescribed under
Republic Act No. 12316.
Based on the applicable excise tax rates, the suspension removes ₱3.36 per kilogram in excise
tax on LPG, equivalent to ₱36.96 for a standard 11-kilogram cylinder, and ₱5.60 per liter on
kerosene, providing direct savings for households that rely on these fuels for cooking and other
daily needs.
“For many families, LPG and kerosene are part of the household budget every month. Our
priority is to ensure that the tax relief is reflected promptly in the market so that the savings
reach Filipino households as quickly as possible,” Energy Secretary Sharon S. Garin said.
Under EO 125, the DBCC, in coordination with the DOE, will review the excise tax suspension
monthly and may recommend its continuation, modification, extension, or termination to the
President. To support this review, the DOE will require oil companies to submit monthly
information on the cost components of covered petroleum products and provide the required
information to the DBCC and Congress in accordance with RA No. 12316.
The latest measure follows the three-month suspension of excise taxes on LPG and kerosene
ordered by President Marcos in April 2026 as part of the government’s response to elevated
international oil prices.
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