Philippine President Marcos suspends taxes on fuel products

[MANILA] Philippine President Ferdinand Marcos Jr suspended taxes on kerosene and liquefied petroleum gas (LPG) on Monday (Apr 13) to help consumers cope with rising fuel costs.

Congress had granted Marcos emergency powers to adjust fuel taxes, one of several measures that the Philippines has undertaken to cope with a sharp surge in oil prices driven by the Middle East conflict.

Marcos said that the temporary tax reduction cuts LPG prices by 3.36 Philippine pesos (S$0.07) per kilogram, almost 37 Philippine pesos per tank and 5.60 Philippine pesos per litre, lowering costs for households that rely on it for lighting and cooking.

He did not say how long the suspension will last. An interagency committee tasked with leading the government’s response to the energy crisis will meet on Tuesday to discuss whether to suspend, reduce or maintain excise taxes on petrol and diesel.

Diesel and petrol prices in the Philippines have more than doubled since the start of the Middle East conflict on Feb 28; the country, which relies heavily on imported fuel, faces supply pressures amid a global price surge.

The Philippines’ central bank warned last week of “spillover effects” from the Middle East conflict after headline inflation in March hit 4.1 per cent on an annual basis. REUTERS