President Ferdinand Marcos Jr. has temporarily suspended the excise taxes on liquefied petroleum gas (LPG) and kerosene, according to Executive Order No. 125 signed on Friday, September 25.

The order provides for the full suspension of the excise tax on LPG, except when it is used as a raw material for petrochemical production or for motive power. The excise tax on kerosene is likewise suspended, except when used as aviation fuel.

The move came after the Department of Energy (DOE) certified that the average price of Dubai crude oil based on the Mean of Platts Singapore (MOPS) reached US$99.41 per barrel over the preceding 30 days—well above the US$80-per-barrel threshold under Republic Act No. 12316.

The Development Budget Coordination Committee (DBCC), through Resolution No. 2026-11, recommended the full suspension of the excise taxes on LPG and kerosene.

Under EO 125, the suspension will be subject to review by the DBCC within 15 days from the issuance of the order and every month thereafter. The committee may recommend the continuation, modification, extension or termination of the suspension.

The excise tax rates will automatically revert to those prescribed under the National Internal Revenue Code if the one-month average Dubai crude oil price falls below US$80 per barrel for one week, as certified by the DOE, or three months after the order takes effect, whichever comes first.

The Department of Energy and Department of Finance, through the Bureau of Internal Revenue and Bureau of Customs, were also directed to conduct an inventory of existing LPG and kerosene stocks upon the effectivity of the order.

Oil companies will likewise be required to submit monthly data on the cost components of the covered petroleum products to the DOE.

The latest suspension follows the government's earlier suspension of excise taxes on LPG and kerosene in April. Those taxes were restored in July after the average Dubai crude price fell below the statutory threshold.