MANILA – The Philippines temporarily suspended excise duties on petroleum products used for cooking, the presidential palace said on Friday, as it struggles to deal with soaring fuel costs from the Middle East war.
“The excise taxes on LPG, except when used as a raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended,” it said.
The cut translates to a reduction of about three pesos (about five US cents) per kilogram of LPG.
The excise cut followed 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 neighbours including Indonesia, Malaysia and Thailand, leaving local transport firms to deal with market fluctuations.
Philippine 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.
He said the average crude oil price over the 30 days to September 11 had reached $99.41.
The import-dependent Philippines declared a national energy emergency in March and has been forced to cast an ever-wider net for fuel, including purchases of oil from Russia.
The war in the Middle East and high inflation trimmed the Philippines’ economic growth in the first half to 2.6 percent, well below government targets. – AFP
