The Philippine government has officially suspended excise taxes on liquefied petroleum gas (LPG) and kerosene starting April 17, 2026, for three months, aiming to ease household burdens amid rising fuel costs and the ongoing energy crisis.

President Ferdinand Marcos Jr. signed Executive Order No. 114 on April 16, following the recommendation of the Development Budget Coordination Committee. The order fully suspends excise taxes on LPG and kerosene until mid-July, except when LPG is used as raw material for petrochemical production or as fuel for vehicles, and when kerosene is used as aviation fuel.

The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) released implementing guidelines on April 17 through Revenue Regulations No. 003-2026, ensuring that retailers and distributors comply with the suspension. The BIR clarified that the excise tax exemption applies only to household and general-use LPG and kerosene, not to industrial or aviation applications.

For millions of Filipino households, the suspension is expected to bring immediate relief. The removal of the ₱3.36 per kilo excise tax on LPG translates to a price reduction of nearly ₱37 for every 11-kilogram tank of cooking gas, a significant savings for families who rely on LPG for daily cooking. Kerosene, widely used in rural areas for lighting and stoves, will also see lower retail prices.

The measure comes as part of the government’s response to the global energy emergency, driven by instability in the Middle East and rising crude oil prices. The Development Budget Coordination Committee will review the suspension monthly, with excise taxes automatically reinstated if the one-month average Dubai crude oil price falls below $80 per barrel or once the three-month period expires.

President Marcos emphasized that the suspension is a temporary but necessary step to protect Filipino households from escalating fuel costs. “This executive order aims to provide relief to Filipinos amid the energy emergency,” he said, underscoring the government’s commitment to cushioning the impact of global price shocks.

With the suspension now in effect, consumers are expected to see lower LPG and kerosene prices in the coming days as retailers adjust to the new tax-free rates. The government has urged vigilance to ensure that the benefits are passed on to households and not absorbed by distributors.