The Bureau of Internal Revenue (BIR), through Revenue Memorandum Circular (RMC) No. 100-2026, is implementing the renewed suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene pursuant to Executive Order (EO) No. 125 by President Ferdinand R. Marcos Jr. under Republic Act (RA) No. 12316.
Commissioner Charlito Martin Mendoza explained that this new round of temporary suspension follows the Department of Energy’s (DOE) certification that the one-month average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached $99.41 per barrel from August 13 to September 11, 2026, exceeding the $80.00 per barrel threshold prescribed under RA No. 12316.
“The excise tax on kerosene is fully suspended, except when used as aviation fuel.”
Under EO No. 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 regular excise tax rates shall automatically revert, one week after the one-month average Dubai crude oil price falls below $80 per barrel, or three months from the effectivity of the EO, whichever comes first.
The regular excise tax rates shall automatically revert, without need of further issuance, one week after the one-month average Dubai crude oil price falls below US$80 per barrel, as certified by the DOE, or three months from the effectivity of the EO, whichever comes first.
The BIR previously implemented a similar suspension under EO No. 114, series of 2026, beginning April 17, 2026.
The suspension was lifted effective July 8, 2026, after the DOE certification that the one-month average Dubai crude oil price had fallen below the applicable $80 threshold.
The BIR continues to implement tax measures in accordance with existing laws and issuances, including measures providing temporary relief in response to elevated global oil prices.
