Marcos Suspends LPG and Kerosene Taxes Amid Oil Price Spike

President Ferdinand Marcos Jr. issued Executive Order No. 125 on September 25, 2026, suspending excise taxes on liquefied petroleum gas (LPG) and kerosene. The measure takes effect immediately and may last up to three months, provided the one-month average price of Dubai crude remains above $80 per barrel. The Department of Energy recently certified the price at $99.41 per barrel for the period between August 13 and September 11.

The order follows a resolution signed on September 22 by Finance Secretary Frederick Go. While LPG and kerosene received relief, the government explicitly excluded gasoline and diesel from the suspension. Secretary Go argued that extending the tax break to these fuels would "not be progressive," as higher-income consumers with higher consumption levels would benefit more than the poor.

Financial assessments from the Development Budget Coordination Committee indicated that suspending taxes on diesel and gasoline would result in a monthly revenue loss of approximately P12 billion. To support vulnerable sectors and public transport drivers, the government intends to use targeted subsidies instead of broad tax cuts. The Development Budget Coordination Committee and the Department of Energy will conduct monthly reviews to determine if the current tax relief should be continued, modified, or terminated.