The Department of Energy (DOE) announced on Tuesday, September 29, 2026, that it will require oil companies to submit monthly breakdown data on the cost components of petroleum products to support the government’s review of suspended excise taxes on liquefied petroleum gas (LPG) and kerosene.
The reporting requirement follows President Ferdinand “Bongbong” Marcos Jr.’s issuance of Executive Order No. 125, series of 2026, which suspended excise tax collections on both fuels in response to surging international crude prices.
The tax relief was triggered after the DOE certified that the one-month average Dubai crude oil benchmark under the Mean of Platts Singapore (MOPS) hit $99.41 per barrel between August 13 and September 11, 2026, surpassing the $80-per-barrel threshold set under Republic Act No. 12316.
Following the directive, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 100-2026 to formalize the suspension. Under EO 125, the Development Budget Coordination Committee (DBCC) and the DOE will review the measure monthly to evaluate whether to continue, modify, extend, or terminate the tax relief.
To facilitate this evaluation, oil firms must submit monthly cost structures to the DOE, which will then share the data with the DBCC and Congress in compliance with statutory reporting requirements.
The executive order outlines specific exemptions: the excise tax suspension applies to household-use LPG but excludes supplies used as raw materials for petrochemical production or motive power. Similarly, kerosene excise taxes are suspended except when used for aviation fuel.
The tax suspension reduces costs by P3.36 per kilogram for LPG, saving consumers P36.96 on a standard 11-kilogram cylinder and P5.60 per liter for kerosene.
“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 stated.
The current directive represents the second intervention this year, following a three-month excise tax suspension on LPG and kerosene implemented between April and July 2026.