DOE orders monthly fuel cost reports

MANILA, Philippines — Oil firms are now required to submit monthly reports on the cost components of liquefied petroleum gas (LPG) and kerosene as part of the review of the excise tax suspension.

The Department of Energy (DOE) said the data would help the government determine whether to continue, modify, extend or terminate the suspension ordered by President Marcos on Sept. 25.

Under Executive Order 125, the excise tax on LPG is suspended, except when used as a raw material for petrochemical production or as motive power.

The excise tax on kerosene is likewise suspended, except when used as aviation fuel.

The Bureau of Internal Revenue subsequently issued a memorandum circular renewing the suspension of excise taxes on LPG and kerosene.

Based on the applicable excise tax rates, the suspension lowers LPG prices by P3.36 per kilo, equivalent to P36.96 for a standard 11-kilo cylinder.

Kerosene prices, meanwhile, will be reduced by P5.60 per liter.

“For many families, LPG and kerosene are part of the household budget every month. Our priority is to ensure that the tax relief is reflected promptly in the market so that the savings reach Filipino households as quickly as possible,” Energy Secretary Sharon Garin said.

The suspension of excise taxes follows the DOE’s certification that the one-month average Dubai crude oil price reached $99.41 per barrel from Aug. 13 to Sept. 11.

Under Republic Act 12316, the President may suspend or reduce fuel excise taxes when the average price of Dubai crude exceeds $80 a barrel for a month.

Following the declaration of a national energy emergency, Marcos suspended excise taxes on LPG and kerosene in April but reinstated them in July.