Temporary Suspension of Excise Taxes on LPG and Kerosene under RR No. 3 2026

The Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 3‑2026 to implement Executive Order (EO) No. 114, series of 2026, which shall temporarily suspend the imposition of excise taxes on specific petroleum products pursuant to Section 148 of the Tax Code, as amended. The issuance follows the sustained increase in global oil prices after the average Dubai crude oil price, based on the Mean of Platts Singapore, shall have reached at least United States dollars (USD) 80 per barrel.

Petroleum products covered

The temporary suspension shall cover the following petroleum products:

• Liquefied petroleum gas (LPG), except when used as a raw material for petrochemical production or as motive power, and,
• Kerosene, except when used as aviation fuel.

The suspension shall apply only to products removed from the place of production or customs custody after the effectivity of the EO.

Duration of suspension

The temporary suspension shall be effective for three (3) months from the EO’s effectivity and shall be subject to a monthly review by the Development Budget Coordination Committee (DBCC). The excise tax rates prescribed under Section 148 of the Tax Code shall automatically revert to their original rates upon the earlier of:

• One (1) week after the one (1)‑month average Dubai crude oil price falls below USD 80 per barrel, as certified by the Department of Energy; or
• The expiration of the three (3)‑month suspension period.

Monitoring and inventory requirements

During the suspension period, the BIR and the Bureau of Customs (BOC) shall submit monthly reports to Congress on the declared value and volume of the covered petroleum products. The Department of Finance, through the BIR and BOC, shall also conduct an inventory of existing LPG and kerosene stocks as of the EO’s effectivity. Revenue officers on premises shall continue monitoring taxpayer activities in accordance with the Tax Code.

Reportorial requirements

Manufacturers of domestically produced LPG and kerosene shall continue filing excise tax returns reflecting a zero tax rate, with the remark “EO No. 114, series of 2026”, and shall submit the corresponding official registry books. Importers shall likewise continue filing the excise tax returns with the BOC and secure the appropriate authority to release imported goods bearing the same EO remark. 

Concerned taxpayers shall also submit duly notarised stock inventory reports within ten (10) days from the EO’s effectivity. Withdrawal certificates for covered products shall clearly indicate EO coverage

Effectivity

RR No. 3‑2026 shall take effect immediately upon its publication on the BIR website on 17 April 2026.

Please be guided accordingly. 

Source:  

 P&A Grant Thornton  

Certified Public Accountants  

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.

As published in SunStar Cebu, dated 29 April 2026