The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular 100-2026 to circularize Executive Order (EO) 125, Series of 2026, temporarily suspending the excise taxes on certain petroleum products. The measure was adopted after the Department of Energy (DOE) certified that the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) reached at least US$80 per barrel.
Petroleum products covered
The temporary suspension applies to the excise taxes imposed on:
• liquefied petroleum gas (LPG), except when used as raw material for the production of petrochemical products or used for motive power; and
• kerosene, except when used as aviation fuel.
Automatic reversion of excise tax rates
The excise tax rates shall automatically revert to the rates prescribed under Section 148 of the Tax Code, without need of further issuance, upon the occurrence of either of the following, whichever comes first:
• one week after the one-month average Dubai crude oil price based on MOPS falls below $80 per barrel, as certified by the DOE; or
• three months after the effectivity of the EO.
The EO took effect immediately upon its publication in the Official Gazette on Sept. 25. Accordingly, the suspension will remain in effect through Dec. 25, unless an earlier reversion is triggered by a decline in the average Dubai crude oil price below $80 per barrel.
Periodic review of the suspension
Within 15 days from the issuance of the EO, and every month thereafter, the Development Budget Coordination Committee (DBCC), in coordination with the DOE, must review the implementation of the suspension and submit reports to the House of Representatives and the Senate. Based on the review, the DBCC may recommend the continuation, modification, extension or termination of the suspension.
Monitoring and reporting requirements
To support the implementation of the EO, the DOE, Department of Finance, BIR and Bureau of Customs are required to monitor inventories and submit reports relating to the covered petroleum products.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants