LPG group asks gov't to suspend excise tax on fuel products

A store helper selling Liquefied Petroleum Gas (LPG) changes the LPG prices on their price board in Paco, Manila on March 25, 2026.

STAR / Edd Gumban

MANILA, Philippines — LPG company REGASCO urged the government to temporarily suspend excise taxes on liquefied petroleum gas and other fuel products as Dubai crude oil prices remained elevated.

REGASCO and LPG Marketers Association President Arnel Ty said Dubai crude prices are currently above $100 per barrel, prompting the group to write Energy Secretary Sharon Garin to appeal for the suspension of excise taxes.

"Sabi namin, kami po'y umaapela na pupuwede na po siyang magrekomenda sa Department of Finance na suspendihin na po hindi lang [ang excise tax] sa LPG at kerosene, kasama na po ang diesel, gasoline," Ty told dzMM in an interview Monday, September 14.

(We are appealing for her to recommend the suspension of excise taxes not only on LPG and kerosene, but also on diesel and gasoline.)

Ty said if their request for an excise tax suspension is granted, LPG prices may go down by P3 per kilogram, diesel by P6 per liter, gasoline by P10 per liter and kerosene by P5 per liter.

Another round of oil price hikes is expected to take effect Tuesday, September 15, as global oil prices continue to rise due to conflicts affecting the Red Sea and Strait of Hormuz.

The latest projected increases could push some fuel products beyond P100 per liter at certain stations.

Under Section 148 of the National Internal Revenue Code, as amended by Republic Act 12316, the president may suspend or reduce excise taxes on petroleum products upon the recommendation of the Development Budget Coordination Committee, in coordination with the Department of Energy, when the one-month average Dubai crude oil price reaches or exceeds $80 per barrel.

Dubai crude is one of the major oil benchmarks used in Asia and influences local fuel pricing.

President Ferdinand Marcos Jr. exercised the authority earlier this year when he issued Executive Order No. 114 in April, suspending excise taxes on LPG and kerosene for up to three months.

As local fuel prices are expected to rise further this week, transport group MANIBELA launched a two-day transport strike from Monday until Tuesday, September 15.

MANIBELA criticized Secretary Garin's earlier remarks that the government has limited control over local fuel prices because the Philippines imports most of its oil supply.

"For transport workers, however, saying that there is little the government can do is not enough while fuel prices continue to rise and directly eat into their daily income," MANIBELA said.