The Manila Times
(UPDATE) PRESIDENT Ferdinand Marcos Jr. ordered the excise taxes on liquefied petroleum gas (LPG) and kerosene suspended for three months to help ease the financial burden of households in the face of the energy emergency driven by the war in the Middle East. The president, through Executive Secretary Ralph Recto, issued Executive Order (EO) 114 on April 16, temporarily suspending the excise taxes on LPG and kerosene. The suspension will be subject to a monthly review by the Development Budget Coordination Committee (DBCC). The tax can be automatically restored one week after the one-month average Dubai crude oil price falls below $80 per barrel. EO 114 also directed the Department of Energy (DOE) and Department of Finance, through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), “to conduct an inventory of existing stocks of LPG and kerosene...” The BIR and the BOC will submit to Congress “monthly information on the declared value and volume of petroleum products” covered by the order. The DOE was directed to require oil companies to submit monthly reports on the cost components of petroleum products covered by the order during the period of suspension of excise taxes. EO 114, which was released to the media on Friday, takes effect immediately upon its publication in the Official Gazette or a newspaper of general circulation. The suspension of excise taxes reduces the price of an LPG tank by P37 and the per-liter price of kerosene by P5.65. There are no indications that the president will also suspend the excise tax on gasoline and diesel. Finance Secretary Frederick Go has earlier said the DBCC “has determined that suspending excise on diesel and gasoline would not likely provide meaningful relief, as any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics.” Go maintained that the president’s “decision is about protecting Filipino families today while safeguarding fiscal stability for future generations.” Citing data from the Philippine Statistics Authority, he said 48 percent of the country’s total kerosene consumption came from the bottom 30 percent of households, while 55.7 percent of LPG users were from the bottom 70 percent. “This means the benefits extend beyond the poorest households to also support middle-income families. For these families, every peso saved on fuel costs means more resources for food, education and health care,” the finance chief said. The price of diesel and gasoline are expected to be slashed next week, the second price rollback in two weeks. Local industry sources on Friday attributed the easing of fuel prices to the ceasefire between Lebanon and Israel, and United States President Donald Trump’s statement that the US and Iran could resume negotiations to end the Middle East conflict over the weekend. Diesel is expected to drop between P17 and P19 per liter, and gasoline between P2 and P3 per liter. These estimates are based on the Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia. This week, diesel dropped to between P2.70 and P23 per liter, and gasoline by as much as P6.50 per liter.
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