Philippines Suspends LPG Tax Amid Soaring Fuel Costs

The Philippines has suspended excise duties on petroleum products used for cooking in response to soaring fuel costs resulting from the Middle East war.

The temporary suspension covers liquefied petroleum gas (LPG) and kerosene, except when used as a raw material for production of petrochemical products or used for motive power. The cut translates to a reduction of about three pesos (about five US cents) per kilogram of LPG.

This move follows a threat by bus operators to hold a two-day nationwide transport strike next week to press the government to let them raise fares, which are state-regulated. Fuel prices in the Philippines are unregulated, unlike neighboring countries such as Indonesia and Malaysia.

President Ferdinand Marcos said the tax would automatically revert after three months or a week after the one-month average Dubai crude oil price falls below $80 per barrel. The average crude oil price over the 30 days to September 11 had reached $99.41, significantly above that threshold.