Excise tax on LPG suspended again

Though tax relief may not translate to lower LPG prices.

Filipino households using LPG are getting another temporary tax break, but that does not necessarily mean cheaper LPG as other costs continue to influence retail prices.

The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 100-2026 on Monday, implementing the suspension of excise taxes on LPG and kerosene under Executive Order No. 125, which was issued on September 25.

The move followed the Department of Energy’s certification that the one-month average Dubai crude oil price reached $99.41 per barrel from August 13 to September 11, well above the $80 threshold set under the law.

For households, the biggest potential impact is on LPG, a major cooking fuel. The excise tax on LPG is fully suspended, except when it is used as raw material for petrochemical production or for motive power.

The suspension removes the excise tax component, but consumers will have to wait for the next LPG price adjustment to see how much of that relief reaches retail prices. LPG prices are also affected by international LPG prices, freight, the peso-dollar exchange rate and other costs.

LPG prices are typically adjusted at the start of each month, so consumers should get a clearer picture of the impact when new prices are announced in the next few days.

The tax break will end once the one-month average Dubai crude price falls below $80 per barrel, or three months after the order takes effect, whichever comes first.

The same suspension applies to kerosene, except when used as aviation fuel.

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