THE SUSPENSION of excise tax on kerosene and liquefied petroleum gas (LPG) will benefit not only the poorest households but also middle-income families, Finance Secretary Frederick Go said yesterday.
Go said the measure will help families and small businesses, including carinderias (eateries), meet daily cooking and energy needs, with savings of about P6.96 per 11-kilogram LPG cylinder and P5.56 per liter of kerosene.
President Ferdinand R. Marcos Jr. ordered the suspension on Monday, April 13, to cushion the impact of rising fuel prices amid the ongoing conflict in the Middle East.
Go said the policy was recommended by the Development Budget Coordination Committee (DBCC) after a thorough review.
“This relief is focused on the most vulnerable,” he said in a statement.
Citing Philippine Statistics Authority data, Go said 48 percent of kerosene consumption comes from the bottom 30 percent of households, while most LPG users belong to 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 healthcare,” he said.
“The DBCC has determined that suspending excise taxes 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,” he added.
Go said the government will continue targeted subsidies for sectors hit by rising transport fuel prices, including public transport operators, drivers, commuters, farmers, and fisherfolk.
The DBCC will also keep monitoring global oil market developments and adjust policies as needed. (PNA)
