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The Bureau of Internal Revenue is implementing Executive Order 125 through Revenue Memorandum Circular No. 100-2026, suspending excise taxes on liquefied petroleum gas and kerosene again
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LPG used as vehicle fuel or petrochemical feedstock, and kerosene used as jet fuel, are still taxed
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Regular rates come back one week after Dubai crude falls below US$80, or after three months, whichever happens first
The Bureau of Internal Revenue (BIR) has put the renewed suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene into effect through Revenue Memorandum Circular (RMC) No. 100-2026 issued on September 28, 2026.
The circular implements Executive Order (EO) No. 125, series of 2026, which President Ferdinand R. Marcos Jr. signed on September 25, 2026, under Republic Act (RA) No. 12316. RA 12316 amended Section 148 of the National Internal Revenue Code to allow a temporary suspension when global oil prices stay high.
BIR Commissioner Charlito Martin R. Mendoza said the new suspension follows a certification from the Department of Energy (DOE). The DOE found that Dubai crude averaged US$99.41 per barrel from August 13 to September 11, 2026, based on the Mean of Platts Singapore (MOPS). That is above the US$80 per barrel threshold set in RA 12316.
EO 125 covers:
- LPG: the excise tax is fully suspended, except for LPG used as raw material for petrochemical products or for motive power (vehicle fuel).
- Kerosene: the excise tax is fully suspended, except for kerosene used as aviation fuel.
The regular excise tax rates will come back automatically, with no further order needed, at whichever of these happens first:
- One week after the one-month average Dubai crude price falls below US$80 per barrel, as certified by the DOE
- Three months after the EO takes effect
The EO tells the DOE and the Department of Finance, through the BIR and the Bureau of Customs (BOC), to take inventory of existing LPG and kerosene stocks. The BIR and BOC must also send monthly reports to the House of Representatives on the declared value and volume of the covered petroleum products.
The Department of Finance, BIR, BOC and DOE may issue implementing rules and guidelines as needed.
This is the second suspension in 2026. The BIR first suspended these taxes under EO No. 114, starting April 17, 2026. That suspension ended on July 8, 2026, after the DOE certified that the one-month average Dubai crude price had fallen below US$80.
The BIR said it will keep implementing tax measures in line with existing laws, including temporary relief in response to high global oil prices.
What it means for logistics stakeholders
- Transport operators: LPG used as vehicle fuel is excluded, so fleets that run on autogas will not get the tax relief.
- Aviation: jet fuel is still taxed, so airlines and air cargo operators will not see lower fuel costs from this measure.
- Importers and distributors: expect inventory checks by the BIR, BOC and DOE, and closer monitoring of declared import values and volumes while the suspension is in place.
- Warehouses, food supply chains and businesses using LPG for heating or cooking: these users can expect lower costs, but only for a limited time. Plan for rates to return within three months, or sooner if crude prices ease.
