MANILA, Philippines — President Ferdinand Marcos Jr. signed Executive Order 125 on Friday, suspending the excise taxes on specific petroleum products.
This comes after crude oil prices breached the $80-per-barrel threshold due to the geopolitical tensions in the Middle East.
Under Republic Act 12316, the President is authorized to suspend or reduce these levies upon the recommendation of the Development Budget Coordination Committee (DBCC) when prices breach the $80 mark.
Excise taxes are fully suspended for liquefied petroleum gas (LPG)—except when used as a raw material for petrochemical production or motive power—and kerosene, except when used as aviation fuel.
Within 15 days of the order's issuance and monthly after, the DBCC and Department of Energy will review the tax suspension and report to the House of Representatives and the Senate.
The tax will only be reinstated if the one-month average Dubai crude price falls below $80 per barrel, or automatically after three months from the order's effectivity, whichever occurs first.
