Staggered fuel price increase to take effect next week

National

THE Department of Energy (DOE) announced that staggered fuel price increases are set to take effect next week following discussions with local oil companies on how to minimize the impact on consumers.

Energy Secretary Sharon Garin said in a Philstar report that the companies are generally open to staggered hikes, noting that this is a voluntary move since firms face potential losses.

The DOE will finalize the new prices by the weekend, based on global oil market trading over five days.

Data from the Mean of Platts Singapore indicate that kerosene could rise by ₱28 per liter, diesel by ₱15, and gasoline by ₱7. Garin cautioned the public against hoarding fuel, which could deplete reserves and destabilize the market.

Before last weekend’s military action by the United States and Israel against Iran, the global oil market faced oversupply, causing Brent Crude prices to fall by 18 percent at the end of 2025.

The conflict has led to the temporary closure of the Strait of Hormuz, a key shipping route for 20 percent of the world’s oil and liquefied natural gas, mostly destined for Asia.

To prepare for possible supply disruptions, the DOE plans to procure one million barrels of diesel through the state-run Philippine National Oil Co., which could cover an additional five days of domestic demand.

Rino Abad, director of DOE’s Oil Industry Management Bureau, said the plan might expand to three million barrels if necessary.

China has halted new fuel export contracts amid the tensions, a move Abad described as “a game changer” because the Philippines imports about 30 percent of its diesel from China and 40 percent from South Korea.

Economic experts warn that inflation could rise if the conflict continues.

Jun Neri, lead economist at the Bank of the Philippine Islands, said a short-term disruption may be manageable, but a prolonged conflict could push oil prices higher and affect inflation.

February’s inflation, which hit a 13-month high, has not yet reflected the conflict’s full impact, according to National Statistician Claire Dennis Mapa of the Philippine Statistics Authority.(Adriane Josef E. Cabase, USJ-R Comm Intern)