The Philippines has temporarily suspended excise taxes on certain petroleum products used for cooking, amid rising fuel costs linked to the ongoing Middle East conflict. The measure, announced by the presidential palace on Friday, affects liquefied petroleum gas (LPG) and kerosene, two key cooking fuels in the country.

According to an executive order, excise duties on LPG—except when used as a raw material for petrochemical production or as motive power—and on kerosene, excluding aviation fuel, will be fully suspended. The move is expected to reduce LPG prices by about three Philippine pesos (around 20 sen) per kilogram.

The suspension comes as transport groups in the Philippines threatened a two-day nationwide strike to demand higher regulated fares, citing the impact of soaring fuel prices on their operations. Unlike many of its neighbors, the Philippines does not regulate fuel prices, placing the burden of market fluctuations on local transport companies.

President Ferdinand Marcos indicated that the excise tax pause is temporary, set to last three months or until a week after the one-month average price of Dubai crude oil falls below US$80 per barrel (approximately RM327). The decision forms part of broader efforts to address the country’s energy challenges amid global unrest.

The Philippines, which is heavily reliant on imported fuel, declared a national energy emergency earlier this year in March. To cope with supply needs, it has expanded its sources to include purchases from Russia, reflecting the urgency in securing diverse energy supplies amid volatile international markets.

This policy adjustment aims to ease the financial strain on households and transport operators grappling with higher fuel prices resulting from geopolitical tensions in the Middle East. The government continues to monitor the situation closely, balancing the need for economic relief with energy security concerns.