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The Bureau of Customs officially implemented in its system on October 1 the renewed suspension of excise taxes on liquefied petroleum gas and kerosene
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BOC Management Information Systems and Technology Group deputy commissioner Revsee Escobedo said BOC’s Electronic-to-Mobile System has been updated to implement the temporary suspension under Executive Order No. 125
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EO No. 125, signed on September 25, 2026, temporarily suspends excise taxes on LPG and kerosene amid elevated global crude oil prices
The Bureau of Customs (BOC) officially implemented in its system on October 1 the renewed suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene.
BOC Management Information Systems and Technology Group (MISTG) deputy commissioner Revsee Escobedo, in a memorandum dated September 30, said BOC’s Electronic-to-Mobile System has been updated to implement the temporary suspension under Executive Order (EO) No. 125 series of 2026.
The Association of Southeast Asian Nations Harmonized Tariff Nomenclature (AHTN) codes for the petroleum products covered by the suspension include the following:
- LPG propane – 2711.12.00
- LPG butanes – 2711.13.00
- LPG others – 2711.19.00
- Other kerosene – 2710.19.83
For kerosene intended for use as aviation fuel, AICODE 1001 should be used in the goods declaration, the memo added.
EO No. 125, signed on September 25, 2026, temporarily suspends excise taxes on LPG and kerosene amid elevated global crude oil prices. The suspension was pursuant to Republic Act (RA) No. 12316, which amended Section 148 of the National Internal Revenue Code to allow a temporary suspension when global oil prices stay high.
The measure followed the Department of Energy’s (DOE) certification that the average Dubai crude oil price, based on the Mean of Platts Singapore (MOPS) over the preceding 30 calendar days, had reached US$99.41 per barrel from August 13 to September 11, 2026. That is above the $80 per barrel threshold set in RA 12316..
EO 125 fully suspends the excise tax on LPG, except for LPG used as raw material for petrochemical products or for motive power (vehicle fuel), and on kerosene, 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
Under EO 125, the Development Budget Coordination Committee, in coordination with the DOE, should review the implementation of the suspension of excise taxes 15 days from the issuance of the EO, and every month thereafter, and submit a report to the House of Representatives and the Senate.
Based on these reports, the DBCC may recommend to the President the continuation, modification, extension, or termination of the suspension.
The DOE and the Department of Finance (DOF), through the Bureau of Internal Revenue (BIR) and BOC, were also directed to conduct an inventory of existing stocks of LPG and kerosene as of the effectivity of the order.
READ: BIR implements renewed LPG, kerosene excise tax suspension
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 $80.—Roumina Pablo
