The Development Budget Coordination Committee (DBCC) will submit its recommendation on extending the suspension of excise taxes on kerosene and liquefied petroleum gas (LPG) beyond the initial three-month period.
Finance Secretary Frederick D. Go stated that discussions are ongoing with the technical working group of the DBCC, with a focus on data-driven decision making, including the current and projected cost of oil.
Under the law, the DBCC can recommend a reduction in excise taxes if the average Dubai crude oil price exceeds $80 per barrel. Currently, the price of crude is below $80, but the technical working group's projected price for the next one to three months will be key to the decision.
The Philippines was placed under a state of energy emergency following the surge in global oil prices, and the government suspended excise taxes on kerosene and LPG for three months starting April 17 to cushion the impact on consumers.
Revenue projections for the country have been adjusted downward to P4.81 trillion in 2026, and the Bureau of Customs reported a 7.2% year-on-year increase in collections, exceeding the target for the period by 2.4%.
The Bureau of Internal Revenue collected P1.434 trillion in gross revenue in the first five months, up 5.49%. The expiration date for the suspension is July 17, and a decision is expected from the DBCC in the next few days.
