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Philippines: LPG Price Rollback Implemented, But Fuel Excise Tax Remains
LPG Price Fluctuations and Consumer Response
In the Philippines, rising LPG prices have forced consumers to switch to electric cooking appliances. Ladylyn Bernas, a consumer, reported that she stopped using LPG for over a week due to its exorbitant cost. Jenny Laude, a restaurant owner, stated that with LPG prices rising by over 700 pesos per tank, she had to increase meat prices from 70 pesos to 75 pesos and vegetable prices from 40 pesos to 50 pesos, also reducing food portions. In response to these concerns, Regasco rolled back LPG prices by 3 pesos per kilogram, equivalent to 33 pesos per 11kg tank, following the suspension of the excise tax. However, other companies like Petron Gasul and Fiesta have yet to announce similar price reductions.
Fuel Price Stabilization Challenges Amid Excise Tax Suspension
Arnel Ty, president of Regasco, indicated that despite the excise tax suspension, it would take approximately six months for LPG prices to return to pre-war levels (below 1,000 pesos per 11kg tank), primarily due to increased shipping costs from distant crude oil sources. Meanwhile, the Department of Finance stated that suspending the excise tax on diesel and gasoline would provide minimal benefits to the public, thus there are no current plans to suspend it. Instead, Undersecretary Karlo Adriano recommended targeted subsidies such as the 10-peso fuel discount to ease consumer burdens. Gasoline prices could potentially decrease by 10 pesos per liter and diesel by 6 pesos per liter if the excise tax is removed. Leo Bellas, president of Jetti Petroleum, estimated that reducing the VAT by half could lead to a 5.7-peso drop for diesel and 3.7 pesos for gasoline.
Middle East Conflict Escalation and Oil Supply Concerns
The Philippine Department of Energy is prioritizing the accumulation of oil reserves amidst rising tensions in the Middle East. Currently, the Philippines holds a 50-day supply of petroleum. Secretary Sharon Garin emphasized the need for government investment to expand storage capacity. Despite the stalled cease-fire talks between the United States and Iran, global oil prices saw a decline on the first day of trading, with diesel dropping by over 10 pesos and gasoline by 1 peso, though kerosene saw a slight increase. From March 10 to April 7, diesel prices had increased by nearly 90 pesos per liter, gasoline by over 35 pesos, and kerosene by more than 75 pesos.
*Source: YouTube: ABS-CBN News (2026-04-14)*
