Philippines Cuts Tax on Petroleum Products to Ease Price Shock

Philippine President Ferdinand Marcos Jr. has announced an immediate reduction in excise taxes on liquefied petroleum gas (LPG) and kerosene, a move designed to cushion Filipino households from the rising fuel costs triggered by the US-Israeli military actions in Iran.

Speaking at a news conference, President Marcos expressed disappointment over the failure of recent peace negotiations between the United States and Iran, which he hoped would stabilize the global energy market. "We were hoping for a good outcome from the peace talks between the US and Iran, but it appears they were unable to strike a deal, which is why we will continue to help our people," he stated.

Acting on authority granted by the legislature to adjust fuel excise taxes, the administration has implemented specific cuts aimed at essential fuels used in daily life.

• LPG: The cost of liquefied petroleum gas, the primary fuel source for cooking in the Philippines, will be reduced by 3.36 pesos (approximately 5.6 US cents) per kilogram, effective Tuesday.
• Kerosene: The price of kerosene, a critical cooking fuel for lower-income families, will drop by 5.60 pesos per litre.

"We have reduced the tax on petroleum products directly used by our people in their everyday lives," Marcos emphasized, highlighting the government's focus on protecting vulnerable sectors from inflationary pressures.

The President indicated that the relief measures may expand to cover transportation fuels. He announced that a government crisis committee would convene on Tuesday to deliberate on possible excise tax adjustments for gasoline and diesel, which are the main fuels powering the country's public transport system.

The decision comes as regional tensions in the Middle East threaten to disrupt global oil supplies, driving up prices worldwide. By lowering domestic taxes, the Philippine government aims to mitigate the immediate economic impact on consumers while monitoring the broader geopolitical situation.

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