Relief is coming for some users of petroleum, but not for everyone.

Department of Finance Secretary Frederick Go has signed a resolution to suspend excise taxes on liquefied petroleum gas (LPG) and kerosene. Go signed the resolution on September 22 during the Department of Finance’s (DOF) Senate budget hearing as the move seeks to again suspend the excise taxes on LPG and kerosene as the government responds to higher global oil prices.

The latest action follows the Department of Energy’s (DOE) certification that Dubai crude averaged USD 99.41/barrel from August 13 to September 11. The figure is now above the USD 80/barrel threshold under Republic Act No. 12316, which allows the government to consider reducing or suspending fuel excise taxes.

Under RA 12316, the President may suspend or reduce fuel excise taxes upon the recommendation of the DBCC and in coordination with the DOE.

However, the DOF resolution still does not automatically trigger a tax suspension. The Development Budget Coordination Committee (DBCC) still needs to recommend which petroleum products should be covered and if their excise taxes should be reduced or fully suspended.

No relief for gasoline and diesel

For gasoline and diesel, Malacañang said the proposal remains under evaluation. Palace Press Officer Claire Castro said the DBCC was still finalizing its recommendation, which could be forwarded to President Ferdinand Marcos Jr. within the week.

Go, however, said the DOF is not inclined to remove the excise taxes on gasoline and diesel because of the potential impact on government revenues. Go estimates that suspending the taxes on the two fuels could reduce government collections by around PHP 12 billion per month.

The discussion comes as motorists face another sharp increase at the pump. Gasoline prices have breached PHP 90 per liter this month, while diesel has already gone beyond PHP 100 per liter.

The proposed LPG and kerosene tax suspension is still subject to approval by the President. If approved, the measure would reduce the price of a standard 11-kilogram LPG tank by around PHP 37, while kerosene would be PHP 5.65 cheaper per liter.