Philippines Suspends LPG, Kerosene Excise Duties 

The Philippines has temporarily suspended excise duties on liquefied petroleum gas (LPG) and kerosene as the government struggles to deal with soaring fuel costs from the Middle East war.

The presidential palace said on Friday that the measure covers LPG, the country’s main cooking fuel, and kerosene under an executive order issued by President Ferdinand Marcos.

“The excise taxes on LPG, except when used as a raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended,” it said.

The suspension will reduce the excise burden on LPG by about three pesos, or roughly five US cents, per kilogram.

The measure excludes LPG used as a raw material for petrochemical production or as motive power, while kerosene used as aviation fuel is also excluded.

The tax suspension follows a threat by bus operators to stage a two-day nationwide strike next week unless the government allows them to increase fares, which are regulated by the state.

Unlike countries including Indonesia, Malaysia and Thailand, the Philippines does not regulate fuel prices, leaving transport operators exposed to fluctuations in global energy markets.

Marcos said the excise duties would automatically return after three months or one week after the 30-day average price of Dubai crude falls below $80 per barrel.

He said the average Dubai crude price for the 30 days to September 11 had reached $99.41 per barrel.

The import-dependent Philippines declared a national energy emergency in March and has expanded its sources of fuel, including purchases of Russian oil.

The Middle East conflict and elevated inflation have also weighed on economic growth, with the economy expanding by 2.6 per cent in the first half of the year, below government targets.