MANILA, Philippines – The Philippine government has suspended the excise taxes on liquefied petroleum gas (LPG) and kerosene as the conflict in the Middle East continues to push local pump prices to historic highs.

President Ferdinand Marcos Jr. on Monday, April 13, announced the suspension of excise taxes on kerosene and LPG, saying this will cut the price of one LPG tank by P37 and P5.65 on the per-liter price of kerosene.

“​​Ibig sabihin magbababa ang gastos sa pagluluto at sa araw-araw na pangangailangan. Malinaw ang proteksyon sa ating lokal na production. Protektahan natin ang mga consumer, ang mga magsasaka at ng industriya,” he said.

(This means that the cost of cooking and daily needs will be lower. We have clear protections for our local production. We will protect the consumers, farmers and our industries.)

The move comes as domestic pump prices surged to new historic highs last week, marking the 13th consecutive week of gasoline price hikes and the 15th consecutive week for diesel.

Iran also earlier assured the safe passage of Philippine-flagged tankers passing through the Strait of Hormuz.

Senate President Pro Tempore Panfilo “Ping” Lacson earlier said the government risks losing around P200 billion in revenue if the excise tax is suspended, while the government could lose around P120 billion by suspending the value-added tax (VAT) on fuel products.

Marcos said that the government is still studying all its options, including removing the VAT on petrol products.

“If the time will come when the VAT should be brought down for whatever products, then we will certainly study very well. Right now, the cost-benefit analysis between the VAT collections and the benefit to people, ordinary people, still favors that we collect VAT and we use the extra funds,” he said. – Rappler.com