Philippines' Marcos suspends taxes on kerosene, LPG; no reduction yet on diesel, petrol

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Philippine President Ferdinand Marcos Jr suspended taxes on kerosene and liquefied petroleum gas on Monday to help consumers cope with rising fuel costs.

The Philippine Congress had granted Marcos emergency powers to adjust fuel taxes, one of several measures the Philippines has undertaken to cope with a sharp surge in oil prices driven by the Middle East conflict.

Marcos said the temporary tax reduction cuts LPG prices by P3.36 ($0.0559) per kilogram and almost P37 ($0.6154) per tank and P5.60 ($0.0931) per litre, lowering costs for households that rely on it for lighting and cooking.

Marcos did not say how long the suspension will last, but an interagency committee tasked with leading the government's response to the energy crisis will meet on April 14 to discuss whether to suspend, reduce, or maintain excise taxes on gasoline and diesel.

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Diesel and gasoline prices in the Philippines have more than doubled since the start of the Middle East conflict on February 28, as the country, which relies heavily on imported fuel, faces supply pressures amid a global price surge.

The Philippines' central bank warned last week of "spillover effects" from the Middle East conflict after headline inflation in March hit 4.1 per cent on an annual basis.