THE BUREAU of Internal Revenue (BIR) said the excise tax rates on kerosene and liquefied petroleum gas (LPG) have returned to the rates prescribed under the National Internal Revenue Code, following the drop in Dubai crude oil prices.
On Wednesday, July 8, BIR advised all concerned manufacturers, importers, petroleum product companies, taxpayers and stakeholders that the Department of Energy (DOE) has certified that the average Dubai crude oil price for June, based on the Mean of Platts Singapore (MOPS), already went down to USD79.45 per barrel, below the USD80 per barrel threshold under Executive Order (EO) 114.
EO 114, issued on April 16, 2026, temporarily suspended the excise taxes on specific petroleum products for a period of three months from its effectivity to mitigate the impact of rising oil prices.
The EO provides for the automatic reversion of excise tax rates, a week after the one-month average Dubai crude oil price based on MOPS falls below USD80 per barrel, as certified by the DOE, or upon the expiration of the suspension period.
“Following the DOE certification, and pursuant to Section 3(i) of Executive Order No. 114, the excise tax rates on kerosene and LPG shall automatically revert to the rates prescribed under Section 148 of the National Internal Revenue Code of 1997, as amended, effective July 8, 2026, without need of further issuance,” BIR said. (PNA)
