BIR suspends excise taxes on LPG, kerosene

The Bureau of Internal Revenue (BIR) has renewed the temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene following a surge in global crude oil prices above the threshold set by law.

The BIR said Revenue Memorandum Circular No. 100-2026, issued 28 September, implements Executive order (EO) 125, signed by President Ferdinand Marcos Jr. on 25 September under Republic Act 12316.

DoE certification

The suspension follows a Department of Energy (DoE)certification that the one-month average Dubai crude oil price based on the Mean of Platts Singapore reached $99.41 per barrel from 13 August to 11 September. The figure exceeded the $80-per-barrel threshold prescribed under the law.

Under the new order, excise taxes on LPG are fully suspended, except when the fuel is used as raw material for petrochemical production or as motive power.

Excise tax on kerosene is also fully suspended, except when used as aviation fuel.

Tax rates returns once Dubai crude oil price falls below $80/barrel

The regular excise tax rates will automatically return once the one-month average Dubai crude oil price falls below $80 per barrel, as certified by the DoE, or three months after the executive order takes effect, whichever comes first.

The latest measure follows an earlier suspension implemented by the BIR under EO 114 starting 17 April.

That suspension was lifted on 8 July after the DoE certified that the average Dubai crude price had dropped below the applicable threshold.

The BIR said the renewed suspension is part of tax measures being implemented under existing laws to provide temporary relief amid elevated global oil prices.