Steep fuel prices seen next week as firms weigh staggered hikes

Philstar.com

March 7, 2026 | 3:39pm

MANILA, Philippines — Fuel prices in the Philippines may rise sharply next week, with the Department of Energy estimating minimum increases of P19 per liter for diesel, P9 for gasoline and P31 for kerosene as global oil markets react to tensions in the Middle East.

Rino Abad, director of the DOE’s Oil Industry Management Bureau, said the estimates are based on recent trading movements but could still change once oil companies finalize their price adjustments.

"'Di ko masabi 'yung sinasabi nilang premiums kasi ang sama ng sitwasyon ngayon, so minimumtayo diyan, P9," Abad said in an interview on dzBB on Saturday, March 7. (I can't be certain about what they're referring to as premiums because the situation now is bad, so the minimum would be P9.)

"Ang diesel, ang minimum siguro diyan mga P19 pesos per liter. Ang kerosene would be P31 pesos," Abad added. (Diesel, the minimum there would be P19 per liter. For kerosene, it would be P31.)

What about staggered increases?

Abad said oil companies asked the government to give them the entire week to complete their computations before deciding how to implement any increase.

The DOE earlier urged petroleum companies to stagger pump price adjustments if increases turn out to be large, following an appeal from President Ferdinand Marcos Jr.

Ccompanies are studying different options, he said.

"Kung malaki daw masyado, baka mag-daily sila ng staggered increase. Pero kung maliit lang, puwede nilang gawin twice a week," he said. (If it's too steep, they could opt for daily staggered increase. But if it's small, they could do a twice-a-week scheme.)

He said oil firms are expected to submit their final decision after completing their calculations.

Higher than earlier projections

The DOE estimates are higher than earlier projections cited by industry sources earlier in the week.

Those earlier projections placed possible increases at P15.33 per liter for diesel and P7.09 per liter for gasoline based on the first three trading days of the week.

Abad stressed that the DOE’s current estimates remain minimum projections and do not yet include additional market costs such as premiums or insurance.

Fuel retailers warned

The agency has also intensified monitoring of fuel retailers following reports of early price increases.

In Tagum City, authorities found a gasoline station that raised diesel prices from P64.85 per liter to P73.20 per liter, an increase of P8.35, before the scheduled adjustment.

The DOE said the station was immediately instructed to revert to the correct price level.

Field offices across Luzon, Visayas and Mindanao have also stepped up inspections to ensure compliance with pricing rules and supply policies.