Philippines Restores Excise Tax on Kerosene and LPG

The Philippine government has reinstated excise taxes on kerosene and liquefied petroleum gas (LPG), ending a temporary suspension that had provided relief to consumers amid high global oil prices. The Bureau of Internal Revenue announced the change on Wednesday, July 8, 2026, after the Department of Energy certified that the average price of Dubai crude oil for June fell below a key threshold.

The one-month average Dubai crude price from June 1 to June 30 settled at $79.45 per barrel, just below the $80-per-barrel trigger level established under Executive Order No. 114. Signed by President Ferdinand Marcos Jr. on April 16, 2026, the order had temporarily suspended excise taxes on kerosene and LPG for up to three months to shield consumers from surging prices triggered by conflict in the Middle East. The order stipulated that the suspension would automatically end one week after the monthly average price fell below the $80 mark, which occurred on July 8.

With the tax restored, the financial cushion provided by the suspension disappears. The removal of the tax had been equivalent to approximately P5.65 per liter of kerosene and nearly P37 for a standard 11-kilogram LPG tank. The...