In a recent announcement, President Ferdinand Marcos Jr. approved the suspension of excise taxes on LPG at kerosene to help reduce the burden on Filipino consumers. The decision comes amid rising fuel prices that continue to affect daily expenses, especially for households that rely heavily on these energy sources.
During a briefing, President Marcos confirmed that the government is taking action under its legal authority to provide immediate relief. According to him, the suspension of excise tax on LPG at kerosene is expected to lower the cost of fuel used for cooking and lighting, which are essential needs for many families.
This move is seen as a direct response to the increasing global oil prices, which have been impacting local fuel costs. By removing the excise tax, the government aims to give short-term financial relief to consumers.
Expected Price Reduction for LPG at Kerosene
With the suspension of excise taxes, consumers can expect noticeable price adjustments in LPG at kerosene.
Here are the estimated reductions:
- Around P3.36 decrease per kilo of LPG
- Approximately P37 less per LPG tank
- About P5.60 reduction per liter of kerosene
These changes are expected to help households manage their daily expenses better, especially those who depend on LPG for cooking and kerosene for basic lighting or alternative fuel use.
For many families, even small reductions can have a significant impact on their budget. The lower prices of LPG at kerosene can help ease the cost of living, particularly in communities where these fuels are part of daily use.
Legal Basis Behind the Tax Suspension
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The suspension of excise tax on LPG at kerosene is not a random decision. It is supported by Republic Act No. 12316, a law that allows the President to reduce or suspend taxes on petroleum products under certain conditions.
Under the law, the following must happen:
- The Development Budget Coordination Committee (DBCC) must recommend the action
- The average Dubai crude oil price must reach or exceed $80 per barrel for one month
Once these conditions are met, the government is allowed to temporarily suspend excise taxes to protect consumers from high fuel costs.
This ensures that the decision is based on economic conditions and not just policy preference.
Temporary Relief for Consumers
While the suspension of excise tax on LPG at kerosene provides immediate relief, it is important to note that this measure is temporary.
According to the law, the excise tax will automatically return under the following conditions:
- One week after oil prices fall below $80 per barrel
- After three months, whichever comes first
This means that the lower prices of LPG at kerosene may not last permanently. However, the temporary suspension still provides much-needed support during periods of high fuel costs.
For consumers, this is an opportunity to save on expenses while the tax break is in effect.
Impact on Filipino Households
The suspension of excise taxes on LPG at kerosene is expected to benefit millions of Filipino households. These fuels are commonly used in everyday life, especially in cooking and basic energy needs.
Lower prices can help:
- Reduce household expenses
- Improve daily budgeting
- Provide relief for low-income families
Although the savings may seem small on a daily basis, they can add up over time and help families allocate their budget to other essential needs.
Conclusion
The decision of President Ferdinand Marcos Jr. to suspend excise taxes on LPG at kerosene is a timely response to rising fuel costs. By lowering the prices of essential energy sources, the government aims to provide immediate relief to Filipino consumers.
While the measure is temporary, it offers a practical solution during periods of high oil prices. Understanding how this policy works helps consumers stay informed and make better decisions when managing their expenses.
As fuel prices continue to fluctuate, government actions like this play an important role in supporting households across the country. Stay tuned for more updates on this development through Metro Balita Ph.
