In response to ongoing fuel price volatility from Middle East tensions and global oil surges, President Ferdinand Marcos Jr. issued Executive Order No. 114 on April 16, 2026, suspending excise taxes on liquefied petroleum gas (LPG) and kerosene for three months to ease burdens on Filipino households, following economic managers' defense of targeted relief.
“The excise taxes on LPG, except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended for a period of three months from effectivity of this Order,” Marcos stated in the executive order.
This follows the Development Budget Coordination Committee's (DBCC) recommendation amid Dubai crude averaging $93.71 per barrel as of April 10—above the $80 threshold—and builds on recent defenses of excluding diesel/gasoline taxes in favor of LPG/kerosene relief and P10-per-liter subsidies for public utility vehicles.
The suspension will undergo monthly DBCC reviews for potential extension, modification, or termination, with taxes reverting to 1997 National Internal Revenue Code levels afterward or upon market improvement.
The Department of Energy (DOE), Department of Finance, Bureau of Internal Revenue, and Bureau of Customs must inventory stocks and report monthly to Congress on LPG/kerosene volumes and values. Malacañang projects LPG price drops of P3.36 per kilogram (about P37 per tank) and P5.60 per liter for kerosene.
Marcos's action invokes Republic Act No. 12316, authorizing temporary suspensions during excessive global oil price spikes.
