REVENUE REGULATIONS (RR) NO. 003-2026
RR No. 003-2026 implements Executive Order (EO) No. 114 issued on April 16, 2026. This mandate is based on Section 148 of the National Internal Revenue Code (NIRC), as amended which authorizes the President to suspend fuel excise taxes when the one-month average Dubai crude oil price based on Mean of Platts Singapore (MOPS) reaches or exceeds USD 80.00 per barrel.
Promulgated under Section 244 in relation to Section 245 of the NIRC, as amended and Section 6 of EO No. 114, these regulations specifically suspend excise taxes on Liquefied Petroleum Gas (LPG) and Kerosene, excluding certain industrial and aviation uses.
I. Suspension of Excise Taxes
Effective April 17, 2026, excise taxes are suspended for the following petroleum products (with exceptions) removed from place of production or customs custody:
| Product | Exceptions (Not Suspended) |
| LPG | Used as raw material for petrochemicals or for motive power. |
| Kerosene | Used as aviation fuel. |
II. Duration and Reversion
The suspension of excise taxes shall take effect on April 16, 2026, the date of effectivity of EO, and shall remain in force for a period of three (3) months, subject to monthly review by the Development Budget Coordination Committee (DBCC), which shall recommend to President whether to continue, modify, extend, or terminate the suspension. The applicable rates shall automatically revert to those prescribed under Section 148 of the NIRC, as amended, without need of a new issuance, if any of the following occur:
- The 1-month average Dubai crude oil price falls below USD 80.00/barrel for one week based on MOPS (certified by the Department of Energy); or
- Upon expiration of the three months in the preceding paragraph.
III. Monitoring and Inventory Requirement
| Monthly Reporting | The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) must submit monthly reports to Congress on the declared value and volume of the covered petroleum products, based on the following: – For the BIR: Authorities to Release Imported Goods (ATRIG) for imported petroleum and Official Registry Books (ORBs) of manufacturers for locally produced products. – For the BOC: Customs Entries filed through the E2M System. These reports must be submitted by the 15th day of the following month. |
| Stock Inventory | The Department of Finance (DOF), through the BIR and BOC, shall conduct an inventory of existing LPG and kerosene stocks as of the EO’s effectivity. |
| On-Premises Monitoring | Revenue Officer On Premises (ROOPs) will continue monitoring taxpayer activities to ensure compliance. |
IV. Reportorial Requirements
| Submission of Returns and Report | – Manufacturers of domestically produced LPG and kerosene shall file tax returns with the BIR at a “zero“ rate, with the required remark: “EO No. 114, Series of 2026”. They must also submit ORBs for each removal of products. – Importers of LPG and kerosene must continue submitting returns to the BOC and secure the corresponding ATRIG, with the same remark as that of local manufacturers. |
| Stock Inventories | – Manufacturers, importers, and storage lessees must submit notarized inventories of stocks (as of April 16, 2026) within ten (10) days from the effectivity of the EO, in the prescribed format shown on the last page (Annex A) of this regulation. – Submissions shall be made to the Excise LT Field Operations Division (ELTFOD) for specific Revenue Regions (RR 4 to 9B), or to the concerned Excise Tax Area (EXTA) for all others. |
| Issuance of Withdrawal Certificates | All Withdrawal Certificates for the removal of covered products must be prominently stamped: “STOCKS COVERED BY EO No. 114, SERIES OF 2026”. |
Violations of these Regulations shall be penalized under the Title X of the NIRC, as amended and applicable rules, all inconsistent issuances are repealed or amended, and the Regulations take effect immediately upon full publication in the Official Gazette or on the BIR website.