Every fuel purchase in the Philippines carries two embedded taxes: the TRAIN Law excise tax (₱10/L gasoline, ₱6/L diesel, ₱5/L kerosene, ₱3/kg LPG) and the 12% VAT — computed on a price that already includes the excise. Enter your pump price to see exactly how much of it is tax, per unit and per fill.
How the computation works
- Excise: a fixed amount per unit under TRAIN (NIRC §148 as amended) — ₱10/L gasoline, ₱6/L diesel, ₱5/L kerosene, ₱3/kg LPG. Terminal rates since January 2020, no automatic annual increase.
- VAT: 12% of the VAT-exclusive price — but since the excise is part of that base, the VAT component of a pump price P is P × 12 ÷ 112. The excise itself gets VAT-ed: a tax on the tax.
- Pure fuel cost = pump price − VAT component − excise. The government slice is everything else.
- Stacking: at ₱60/L gasoline, taxes are ₱16.43/L (≈27% of the pump price); at ₱50/L diesel, ₱11.36/L (≈23%).
Worked example: a ₱60/L gasoline fill of 40 liters costs ₱2,400 — of which ₱657.14 is tax (₱400 excise + ₱257.14 VAT). Over a year of weekly fills, that is roughly ₱34,000 in fuel taxes alone.
What this calculator does not cover
- Temporary suspensions: excise on LPG and kerosene was suspended April 17–July 8, 2026 (Dubai-crude trigger, DBCC-recommended EO) and has since reverted; this tool always uses the statutory terminal rates.
- Aviation fuel, bunker fuel, and other petroleum products with their own §148 lines, and exempt/zero-rated users (e.g., some international carriers).
- Oil company margins, biofuel blending costs, and the EDB additive — everything that is not tax sits inside “pure fuel cost”.
- Premium vs regular gasoline are taxed at the same ₱10/L — the pump price difference is not a tax difference.
Want the full picture?
Our fuel tax guide explains the TRAIN tranche history, why diesel is taxed less, the VAT-on-excise stacking, and how suspensions work — with worked examples.
Read the Fuel Tax GuideCurious about VAT generally?
The 12% on fuel is the same VAT that applies to most goods and services — our VAT calculator adds, removes, and nets it.
Open the VAT CalculatorFrequently Asked Questions
How much tax is in a liter of gasoline in the Philippines?
Two taxes sit inside the pump price: the TRAIN excise of ₱10.00 per liter, plus 12% VAT computed on the price including that excise. At ₱60 per liter, that is ₱10.00 excise + ₱6.43 VAT = ₱16.43, or about 27% of what you pay.
What is the fuel excise tax rate for diesel, kerosene, and LPG?
The TRAIN Law terminal rates, in force since January 2020: gasoline ₱10 per liter, diesel ₱6 per liter, kerosene ₱5 per liter, and LPG ₱3 per kilogram. These rates have no automatic annual increase.
Is VAT charged on top of the excise tax on fuel?
Yes. The 12% VAT is computed on the selling price that already includes the excise tax — so the VAT you pay includes a tax on the excise itself. This stacking is why the total government share reaches roughly a quarter of the pump price.
Can the fuel excise tax be suspended?
Yes, temporarily and by trigger. The TRAIN Law ties suspension to Dubai crude price averages, and the President can act on the Development Budget Coordination Committee’s recommendation — as happened from April 17 to July 8, 2026, when excise on LPG and kerosene was suspended for three months before automatically reverting. Gasoline and diesel excise were not suspended.
Why is diesel taxed less than gasoline?
By design, TRAIN set a lower excise on fuels used by public transport, agriculture, and industry — diesel ₱6 per liter versus gasoline ₱10 — to soften the pass-through to fares, food, and freight.
Does the fuel excise rate increase every year?
No. TRAIN raised the rates in three annual tranches (2018, 2019, 2020) and they have stayed at those terminal levels since — ₱10 gasoline, ₱6 diesel, ₱5 kerosene, ₱3 per kg LPG. The only changes since 2020 have been temporary suspensions, not rate increases.
This calculator provides estimates based on the National Internal Revenue Code §148 as amended by the TRAIN Law (RA 10963), with rates re-verified against 2026 BOC/BIR issuances. It is not tax advice — consult the BIR or a qualified tax professional for specific cases.