Temporary suspension of excise taxes on LPG and kerosene

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 100-2026 to circularize Executive Order (EO) No. 125, Series of 2026, temporarily suspending the excise taxes on certain petroleum products. The measure was adopted after the Department of Energy (DOE) certified that the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached at least USD 80 per barrel.

Petroleum products covered

The temporary suspension applies to the excise taxes imposed on:

• liquefied petroleum gas (LPG), except when used as raw material for the production of petrochemical products or used for motive power; and,
• kerosene, except when used as aviation fuel.

Automatic reversion of excise tax rates

The excise tax rates shall automatically revert to the rates prescribed under Section 148 of the Tax Code, without need of further issuance, upon the occurrence of either of the following, whichever comes first:

• one week after the one-month average Dubai crude oil price based on MOPS falls below USD 80 per barrel, as certified by the DOE; or
• three months after the effectivity of the EO.

The EO took effect immediately upon its publication in the Official Gazette on 25 September 2026. Accordingly, the suspension will remain in effect through 25 December 2026, unless an earlier reversion is triggered by a decline in the average Dubai crude oil price below USD 80 per barrel.

Periodic review of the suspension

Within 15 days from the issuance of the EO, and every month thereafter, the Development Budget Coordination Committee (DBCC), in coordination with the DOE, must review the implementation of the suspension and submit reports to the House of Representatives and the Senate. Based on the review, the DBCC may recommend the continuation, modification, extension or termination of the suspension.

Monitoring and reporting requirements

To support the implementation of the EO, the DOE, Department of Finance, BIR, and Bureau of Customs are required to monitor inventories and submit reports relating to the covered petroleum products.

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 15 October 2026