President Ferdinand Marcos Jr. has approved the suspension of excise taxes on liquified petroleum gas (LPG) and kerosene after the average Dubai crude oil price based on the Mean of Platts Singapore in the last 30 days has reached $ 99.41 per barrel.
This was upon the recommendation of the Development Budget Coordination Committee to fully suspend excise taxes on LPG and kerosene.
“The excise taxes on LPG, except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended,” read Executive Order 125.
The excise tax rates on petroleum products shall automatically revert to the rates prescribed in the National Internal Revemue Code upon the occurrence of any of the following, whichever comes first:
One week after the one-month average Dubai crude oil price based on MOPS falls below $ 80 per barrel, as certified by the Department of Energy; or
After three months from the effectivity of EO 125.
The DBCC and the DOE shall review the implementation of the suspension of fuel excise taxes within 15 days and submit a report to the House of Representatives and the Senate.
Based on these reports, the DBCC may recommend to the President the continuation, modification, extension, or termination of the suspension of fuel excise taxes.
The DOE and the Department of Finance are directed to conduct an inventory of existing stocks of LPG and kerosene, and submit data on the declared value and volume of petroleum products covered by the directive.