1 day ago
6
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
MANILA, Philippines — The Department of Energy yesterday convened independent oil firms for an emergency meeting to assess the status of their supply as well as secure their commitment to implement measures aimed at mitigating the impact of sharp fuel price hikes in the coming days.
Pump prices are expected to rise by as much as P1.90 per liter today.
In separate advisories, Jetti, Seaoil, Petron, Caltex, PTT Philippines and Cleanfuel announced upward price movements of P1.90 per liter for gasoline, P1.20 for diesel and P1.50 for kerosene.
Energy department director Rino Abad said such “big-time adjustments” might prompt the agency to ask oil firms to implement a staggered approach next week to ease the impact on motorists.
“This has been done before. The measures to mitigate high prices include staggered increases and offering promos,” Abad told reporters yesterday, adding that select fuel stations are giving discounts of up to P5 per liter. Details of the meeting were unavailable.
Despite supply disruptions in the Middle East, Abad noted that local oil firms have one to two months of inventory.
Fuel prices, however, could climb even further next week as local pumps begin to absorb the full impact of the escalating conflict in the Middle East, the Department of Energy (DOE) warned.
Over the weekend, the US and Israel launched major attacks on Iran that killed Ayatollah Ali Khamenei, Iran’s longtime supreme leader.
Iran retaliated with a wave of airstrikes across the Middle East, targeting multiple countries that host US military bases, including Bahrain, Kuwait, Qatar and the United Arab Emirates.
The main threat to the global oil market is the effective closure of the Strait of Hormuz, a critical chokepoint that links the Middle East to the rest of the world for oil and gas shipments.
“It is likely that prices could be pushed to $100 per barrel and beyond if the current disruption to supply flows in the Strait of Hormuz is prolonged,” Jetti president Leo Bellas said.
Local diesel and kerosene prices have been rising for 10 consecutive weeks, while gasoline has increased eight times in a row.
Since the start of the year, gasoline, diesel and kerosene prices have climbed by P6.70, P9.40 and P7.70 per liter, respectively.
Transport group MANIBELA slammed the government, particularly the DOE, for what it called a failure to take effective measures to ease the impact of soaring fuel prices.
“This marks the 10th increase in petroleum products this year, placing a heavy burden on drivers and dealing a major blow to the public transportation sector and all motorists,” MANIBELA chairman Mar Valbuena told The STAR.
“The failure to approve petitions for fare hikes, without offering any alternative solutions, only shows a lack of concern not just for public transport operators but for all motorists,” he added.
Fuel subsidy
Sen. Sherwin Gatchalian, for his part, is pushing for revisions in the fuel subsidy program to provide immediate relief to public utility vehicle drivers.
Gatchalian is proposing that a certain percentage increase in fuel prices within a week should automatically trigger the release of fuel subsidies.
Under the current Pantawid Pasada Program, fuel subsidies are released only when global oil prices hit the $80-per-barrel threshold.
Business groups, meanwhile, are urging the government to step up efforts to diversify energy sources.
“Our country sources 100 percent of its crude oil imports from the Middle East. With oil prices surging amid fears of disruption in the Strait of Hormuz, we call on the government to urgently explore and secure alternative sources of fuel supply to reduce our dependence on a single region,” the Philippine Chamber of Commerce and Industry (PCCI) said in a statement.
The group also urged the DOE to accelerate the development of renewable energy (RE) and domestic energy alternatives to address the country’s energy vulnerability.
Federation of Philippine Industries chairperson Elizabeth Lee said the current situation highlights the importance of long-term resilience measures, including reduced reliance on imports for energy needs.
“All the more now, we need to accelerate energy diversification and reduce dependence on imported fuels. Expanding RE — including solar, wind and geothermal — strengthening energy efficiency, encouraging local sourcing and accelerating infrastructure modernization will be critical to cushioning the economy from recurring external shocks,” Lee said.
Stabilize prices, government urged
The PCCI said the government should work on stabilizing fuel prices and ensuring adequate supply of basic goods and commodities through strategic buffer stocking and price monitoring.
The PCCI also cited the importance of using monetary tools to protect the peso, maintain financial stability and preserve investor confidence.
“Businesses will need to tighten belts and actively manage financial risks. Quick, low hanging reforms that ease the cost of doing business and reduce the ‘hidden taxes’ on local manufacturers and MSMEs can help cushion, at least in part, the impact of global pressures,” Lee said.
With the Middle East crisis seen to turn for the worse, the PCCI said micro, small and medium enterprises (MSMEs) would need greater support.
With over two million overseas Filipino Workers (OFWs) deployed across the Middle East, the PCCI said the Department of Migrant Workers, Department of Foreign Affairs and Overseas Workers Welfare Administration should immediately activate emergency protocols, keep communication lines open with workers on the ground and fast-track evacuation and repatriation plans, if necessary.
GlobalSource Partners country analyst Diwa Guinigundo said the country may see an immediate reduction in OFW remittances and even foreign portfolio investment due to the Middle East conflict.
PCCI said the government has to ensure that repatriated OFWs receive immediate livelihood and reintegration support.
Import dependence
The agriculture industry, meanwhile, has warned that the raging Middle East conflict would highlight the adverse effect of the country’s import dependence on agricultural supply chain.
Jason Cainglet, executive director of Samahang Industriya ng Agrikultura (SINAG), said importers may use the escalating regional conflict to raise import stock prices in the country.
Cainglet underscored that while the global oil demand may affect the farm-to-retail logistics, market prices would remain under control only if local production is amply supported.
Local production has declined in the past two years because of low import tariffs, SINAG noted.
In 2025, almost 50 percent of the consumption was imported goods and services.
Cainglet said importers often cite higher global commodity prices, weaker peso, and increased shipping costs to justify price hikes, even when farmgate prices remain stable.
“Our producers are worried because they sell their products at low farm rates, but retail prices in the markets are still high,” Cainglet said.
The Department of Agriculture conducted a special price and supply monitoring earlier at the Commonwealth Market in Quezon City to ensure compliance with the maximum suggested retail price of staple food items. — Louella Desiderio, Andrew Ronquillo
