THE BUREAU of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 100 on Monday, Sept. 28, implementing the renewed suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene.
BIR said this is pursuant to Executive Order (EO) 125 issued on Sept. 25 by President Ferdinand R. Marcos Jr.
Under EO 125, the excise taxes on LPG are fully suspended, except when used as raw material for the production of petrochemical products or for motive power, while the excise tax on kerosene is fully suspended, except when used as aviation fuel.
The temporary suspension of the excise tax follows the Department of Energy’s earlier certification that the one-month average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached US99.41 per barrel from Aug. 13 to Sept. 11, 2026, exceeding the USD80 per barrel threshold prescribed under Republic Act 12316.
The regular excise tax rates, however, will automatically revert, without need of further issuance, one week after the one-month average Dubai crude oil price falls below USD80 per barrel, as certified by the Department of Energy, or three months from the effectivity of the EO, whichever comes first.
The DOE, BIR and the Bureau of Customs are also directed to conduct an inventory of existing stocks of LPG and kerosene as of the effectivity of the order.
The government earlier implemented a similar suspension in April following the surge in oil prices.
The suspension was lifted on July 8 after the DOE certification that the one-month average Dubai crude oil price had fallen below the applicable USD80 per barrel threshold. (PNA)
