Finance chief signs resolution removing excise tax on LPG and kerosene, keeps diesel and gasoline taxes
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What happened
Finance Secretary Frederick Go announced that he signed a resolution removing excise tax on LPG and kerosene. He said the government would not suspend excise taxes on diesel and gasoline because of the revenue cost.
Why it matters
The announcement changes the near-term fuel-tax treatment for two widely used household fuels and clarifies that broader pump-price relief will not come through a general fuel-tax suspension. That affects revenue planning, inflation pass-through, and the mix between tax relief and targeted subsidies.
Finance Secretary Frederick Go said on September 22 that he had signed a resolution removing excise tax on LPG and kerosene while rejecting a broader suspension covering diesel and gasoline. The move creates a targeted fuel-tax relief measure aimed at household cooking and lighting fuels, while preserving most fuel-tax revenue. It also signals that the government intends to contain the fiscal cost of energy-price relief by limiting tax foregone and leaning on narrower support tools rather than a broad rollback.
Watch for
Department of Finance publication of the signed resolution or implementing order specifying the effectivity date on or after 2026-09-23 Bureau of Internal Revenue advisory on excise-tax treatment and compliance instructions for LPG and kerosene sellers by 2026-09-26 Department of Energy retail price monitoring showing LPG and kerosene price adjustments after tax removal by 2026-09-26 Malacañang or DBM statement by 2026-09-26 on whether targeted transport or household subsidies will be used instead of wider fuel-tax suspension
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