BIR suspends excise taxes on LPG and kerosene amid high crude oil prices

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular No. 100-2026, implementing a new round of excise tax suspensions on liquefied petroleum gas (LPG) and kerosene following Executive Order No. 125 issued by President Ferdinand Marcos Jr.

Commissioner Charlito Martin R. Mendoza explained that this new round of temporary suspension follows the Department of Energy’s (DOE) certification that the one-month average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached US99.41 per barrel from August 13 to September 11, 2026, exceeding the US80.00 per barrel threshold prescribed under RA No. 12316.

Under EO No. 125, the excise taxes on LPG are fully suspended, except when used as raw material for the production of petrochemical products or for motive power, while the excise tax on kerosene is fully suspended, except when used as aviation fuel.

The regular excise tax rates shall automatically revert, without need of further issuance, one week after the one-month average Dubai crude oil price falls below US$80 per barrel, as certified by the DOE, or three months from the effectivity of the EO, whichever comes first.

The BIR previously implemented a similar suspension under EO No. 114, series of 2026, beginning April 17, 2026. The suspension was lifted effective July 8, 2026, after the DOE certification that the one-month average Dubai crude oil price had fallen below the applicable US80 threshold.

The BIR continues to implement tax measures in accordance with existing laws and issuances, including measures providing temporary relief in response to elevated global oil prices.

Read the full RMC No. 100-2026 here: https://tinyurl.com/RMC100-2026