The government has suspended the excise tax on liquefied petroleum gas (LPG) and kerosene starting April 14 as part of efforts to reduce expenses for Filipino households.
President Ferdinand Marcos Jr. said the measure was implemented under authority granted by law, which allows the reduction of taxes on petroleum products during certain conditions.
According to the President, the suspension is equivalent to a reduction of ₱3.36 per kilogram of LPG, or about ₱37 per tank. Kerosene prices will also be reduced by ₱5.60 per liter.
Marcos said the move is intended to lower household spending on cooking and other daily necessities that rely on LPG and kerosene.
The President also explained why the Value-Added Tax (VAT) on petroleum products was not included among the taxes being reduced.
He noted that VAT collections increase when oil prices rise, providing additional government funds used for subsidies and assistance programs for various sectors.
Marcos said removing VAT from fuel products could result in benefits primarily going to the petroleum sector, while reducing funds available for broader public assistance programs.
Despite this, the President assured that all options remain under study, including possible adjustments to VAT if necessary.
He added that future meetings will discuss whether diesel and gasoline may be included in similar tax-related measures on petroleum products.
The suspension of excise taxes on LPG and kerosene forms part of ongoing efforts to manage fuel-related expenses and ease financial pressure on households affected by rising costs.
