THE Bureau of Internal Revenue (BIR) has officially implemented a new round of excise tax suspensions on liquefied petroleum gas (LPG) and kerosene to cushion consumers against rising global fuel costs.
The tax relief measures are outlined in Revenue Memorandum Circular No. 100-2026, issued pursuant to Executive Order No. 125 signed by President Ferdinand R. Marcos Jr.
BIR Commissi oner Charlito Martin R. Mendoza confirmed that the suspension was triggered after the Department of Energy (DOE) certified that average Dubai crude oil prices hit US99.41per barrel between August 13 and September 11, 2026.
Under Republic Act No. 12316, crossing the US80.00 threshold allows the government to temporarily suspend excise duties on key petroleum products.
Under the new directive, excise taxes on LPG are fully suspended, with exceptions for its use as raw material in petrochemical manufacturing or for motive power.
Similarly, kerosene excise taxes are entirely paused, except when utilized as aviation fuel.
The tax relief is temporary and structured with automatic rollback mechanisms.
Regular excise rates will automatically resume one week after the one-month average Dubai crude oil price dips below US$80 per barrel as certified by the DOE, or three months following the executive order’s effectivity, whichever occurs first.
This marks the second tax pause implemented this year.
The BIR previously issued a similar suspension under EO No. 114 from April 17 to July 8, 2026, which was lifted after global oil prices temporarily receded below the statutory threshold.