President Marcos Removes Excise Tax on LPG and Kerosene to Ease Oil Crisis Impact
In a significant move to mitigate the effects of the ongoing oil crisis, President Ferdinand R. Marcos Jr. has announced the elimination of excise tax on liquefied petroleum gas (LPG) and kerosene. This directive is part of a broader government strategy to provide immediate financial relief to consumers grappling with rising energy costs.
Direct Savings for Households
Under this new policy, consumers will see a reduction of P3.36 per kilogram of LPG, translating to approximately P37.00 per standard tank. For kerosene, the excise tax removal will lower prices by P5.65 per liter. These cuts are aimed at decreasing expenses for cooking and other essential needs, offering tangible benefits to Filipino families.
Additional Measures to Stabilize Prices
Beyond the tax reduction, President Marcos has assured the public that prices of key commodities will remain stable until the end of April. This includes staples such as sardines, bread, instant noodles, and milk. To further curb food inflation, the government has abolished toll fees at fishports and reduced terminal fees at ports for vehicles transporting agricultural products. These steps are designed to prevent additional costs from trickling down to market prices.
Balancing Economic Priorities
In his announcement, President Marcos emphasized that the administration has chosen to retain the value-added tax (VAT) on petroleum products. This decision ensures a steady revenue stream to fund subsidies and cash benefits across various sectors, not just transportation. The VAT collections will be allocated to support programs for farmers, senior citizens, persons with disabilities (PWDs), and single parents, including an expansion of the “Bentang Bigas” rice program and other aid initiatives.
Long-Term Economic Strategy
President Marcos highlighted that these measures are part of a delicate balancing act within the complex economic system. The goal is to protect consumers from price shocks while safeguarding local producers from potential losses. Malacañang has committed to continuously evaluating all options, with a promise that the government will not relent until every Filipino experiences genuine relief in their daily lives.
The removal of excise tax on LPG and kerosene, coupled with price controls and fee waivers, underscores the administration's proactive approach to addressing the oil crisis. As the situation evolves, further actions may be considered to ensure economic stability and public welfare.
