Philippines cuts tax on petroleum products to ease price shock
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Mr Marcos says trimming excise taxes on liquefied petroleum gas and kerosene will ease inflation.
PHOTO: AFP
MANILA – Philippine President Ferdinand Marcos Jr on April 13 said excise taxes on liquefied petroleum gas (LPG) and kerosene will be trimmed to ease the fuel price shock triggered by the US-Israeli war on Iran.
Mr Marcos, speaking at a news briefing, said: “We were hoping for a good outcome from the peace talks (between) the US and Iran, but it appears they were unable to strike a deal, which is why we will continue to help our people.
“We have reduced the tax on petroleum products directly used by our people in their everyday lives.”
After the legislature’s earlier passage of a law authorising him to adjust fuel excise taxes, Mr Marcos said the cost of LPG, the country’s fuel of choice for cooking, will be cut by 3.36 pesos (S$0.07) per kg from April 14.
He said the price of kerosene, the cooking fuel used by poorer families, will drop by 5.60 pesos a litre.
Mr Marcos said he plans to convene a meeting of a government crisis committee on April 14 to discuss possible excise tax adjustments on petrol and diesel, the main fuels for public transport.
The Philippines sources its crude oil from the Middle East and imports refined petroleum products mainly from Asian refineries that are also dependent on crude oil shipped through the Strait of Hormuz, which Iran has effectively closed.
Diesel pump prices in the Philippines have more than doubled to about 145 pesos a litre since the start of the war.
The government on April 7 said war-driven inflation figures showed that food prices increased nearly twice as fast in March as the month before. AFP
