THE Bureau of Internal Revenue (BIR) has issued a circular implementing the renewed suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene.
The BIR said in a statement the Revenue Memorandum Circular (RMC) 100-2026 it issued last Monday was after President Ferdinand R. Marcos Jr. issued last Friday Executive Order (EO) 125 (series of 2026).
BIR Commissioner Charlito Martin R. Mendoza explained that this new round of temporary suspension follows the Department of Energy’s (DOE) certification that the one-month average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached $99.41 per barrel from August 13 to September 11,2026, exceeding the $80 per barrel threshold prescribed under Republic Act 12316. The law signed on March 25, 2026, authorizes the President to temporarily suspend or reduce excise taxes on petroleum products.
Under EO 125, the BIR said the excise taxes on LPG are fully suspended, except when used as raw material for the production of petrochemical products or for motive power, while the excise tax on kerosene is fully suspended, except when used as aviation fuel.
‘The regular excise tax rates shall automatically revert, without need of further issuance, one week after the one-month average Dubai crude oil price falls below US$80 per barrel, as certified by the DOE, or three months from the effectivity of the EO, whichever comes first,’ the BIR noted.
The BIR previously implemented a similar suspension under EO No. 114, series of 2026, beginning April 17, 2026. The suspension was lifted effective July 8, 2026, after the DOE certification that the one-month average Dubai crude oil price had fallen below the applicable $80 threshold.
Marcos issued EO 125 on the recommendation of the Development Budget Coordination Committee (DBCC). It will take effect immediately upon publication in the Official Gazette or in newspapers of general circulation.
The Department of Finance (DOF) and the DOE were allowed to issue rules, regulations and guidelines for the implementation of the suspension.
Both agencies were directed to conduct an inventory of existing stocks of LPG and kerosene once EO 125 takes effect.
DOF’s Bureau of Customs and Bureau of Internal Revenue were mandated to submit to the House of Representatives monthly information on the declared value and volume of petroleum products covered by EO 125.
Within 15 days from the issuance of EO 125, the DBCC in coordination with DOE will review the implementation of the new issuance to the House of Representatives and the Senate. It may also recommend to the President the continuation, modification, extension, or termination of the said suspension.