President Ferdinand R. Marcos Jr. has signed Executive Order No. 114. This suspends excise taxes on liquefied petroleum gas (LPG) and kerosene for three months to help ease the impact of rising fuel prices on households.

The measure follows a recommendation from the Development Budget Coordination Committee (DBCC) amidst elevated global oil prices, with the Department of Energy (DOE) reporting that Dubai crude averaged USD 93.71 per barrel over the past 30 days.

Under the order, excise taxes on LPG and kerosene are fully suspended, except when these are used for specific purposes such as petrochemical production, motive power, or aviation fuel.

The suspension is expected to translate to lower costs for consumers, roughly equivalent to about PHP 3.36 per kilo of LPG, about PHP 37 per tank, and PHP 5.60 per liter of kerosene.

The order will remain in effect for three months, but will be reviewed every month by the DBCC. The committee may recommend whether to continue, adjust, extend, or end the suspension depending on changes in global oil prices.

The EO also sets clear conditions for when the tax break will end. Excise taxes will automatically return to previous levels if oil prices fall below USD 80 per barrel, based on DOE monitoring, or once the three-month period expires.

To ensure proper implementation, the DOE and the Department of Finance (DOF), through the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), have been directed to conduct an inventory of existing LPG and kerosene stocks.

The BIR and BOC are also required to submit monthly reports to Congress on the volume and declared value of petroleum products covered by the order.

The temporary suspension is enabled by Republic Act No. 12316, which allows the President to reduce or suspend fuel excise taxes during periods of high oil prices.

As the government rolls out tax relief measures, how much impact can temporary fuel tax cuts have on the daily expenses of Filipino households?

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