The Philippine government has suspended excise taxes on liquefied petroleum gas (LPG) and kerosene in an effort to ease the burden of soaring fuel costs on ordinary households, President Ferdinand Marcos Jr. announced on Monday, April 13.

The move follows an unprecedented run of price increases at the pump, with gasoline prices rising for 13 consecutive weeks and diesel for 15 consecutive weeks — driven largely by the ongoing conflict in the Middle East, which has disrupted global oil supply chains and pushed prices to historic levels. Iran had earlier offered assurances of safe passage for Philippine-flagged tankers through the Strait of Hormuz, a critical chokepoint for global oil shipments.

Marcos said the tax suspension would reduce the price of a standard LPG cylinder — the cooking fuel used by millions of Filipino households — by around 37 Philippine pesos (roughly $0.65), and cut the per-litre price of kerosene by 5.65 pesos. "The cost of cooking and daily needs will be lower," the president said. "We will protect the consumers, farmers and our industries."

The decision carries a significant fiscal cost. Senate President Pro Tempore Panfilo Lacson warned earlier that a full suspension of excise taxes on fuel could cost the government as much as 200 billion pesos in lost revenue. A separate suspension of the value-added tax (VAT) on fuel — which the government is still weighing — could cost a further 120 billion pesos. Marcos signalled caution on the VAT question, saying that for now, collecting the tax and redirecting the funds remained more beneficial to the broader public than a blanket reduction.

The suspension reflects a wider challenge facing fuel-importing nations in the developing world: balancing fiscal sustainability with the social and economic pressures that sharp energy price increases place on lower-income households. LPG and kerosene are the primary cooking and lighting fuels for many Filipinos, particularly outside major urban centres, making their prices a direct measure of daily living costs. The government's decision to act on excise taxes while deferring a VAT ruling suggests a calibrated approach — offering targeted relief while preserving broader revenue streams needed for public spending.