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Philippines' Marcos suspends taxes on fuel products

On Monday, Philippine President Ferdinand Marcos Jr suspended taxes on kerosene and liquefied petrol gas to help consumers cope with rising fuel prices.

Congress had granted Marcos emergency powers for adjusting fuel taxes. This is one of the measures taken by the Philippines to deal with the sharp rise in oil prices caused by the Middle East conflict.

Marcos stated that the temporary tax cut reduces LPG prices by almost 37 Philippine 'pesos (0.6154) for each tank, and by 5.60 Philippine pesos (0.0931) for every liter. This will lower costs for households who rely on LPG for cooking and lighting.

Marcos didn't?say for how long this suspension would last. However, an interagency panel tasked with leading government response to energy crisis will be meeting on April 14, to decide whether to suspend, reduce, or maintain the excise tax on gasoline and diesel.

The 'Philippines' diesel and gasoline prices have doubled in price since the Middle East conflict began on February 28. This is because the country relies heavily on imported fuels, and faces supply problems amid the global price hike.

The Philippines central bank warned of "spillover" effects from the Middle East conflict last week after headline inflation in March reached 4.1% on an annually basis.

(source: Reuters)