Palace weighs measures vs rising fuel prices

By Erika Mae P. Sinaking, Reporter

THE PHILIPPINE government is studying possible measures to cushion the impact of rising fuel prices as renewed tensions in the Middle East threaten global oil supplies, Malacañang said on Wednesday.

President Ferdinand R. Marcos, Jr. has ordered concerned agencies to assess the situation and ensure assistance reaches sectors most vulnerable to higher fuel costs, Palace Press Officer Clarissa A. Castro told reporters.

The Department of Energy  earlier said developments in the Middle East continue to put upward pressure on domestic pump prices and that it has stepped up fuel price monitoring as market volatility persists.

Ms. Castro said the Department of Transportation is evaluating additional interventions, including assistance for affected sectors, but did not specify possible measures.

“As of now, we have spoken directly with [Transportation] Secretary Banoy [Giovanni Z. Lopez], and he has been tasked to study the situation, as there is a need to balance circumstances because when fare prices increase, the prices of other products will definitely increase as well,” she said in Filipino.

“So, the President’s wish is for no one to be left behind; everyone must be helped in the right way and in a balanced manner,” Ms. Castro added, but declined to say whether the administration would approve pending fare hike petitions or suspend excise taxes on gasoline and diesel, saying discussions continue.

Energy Secretary Sharon S. Garin earlier noted that renewed military strikes between the United States and Iran have reignited concerns over the security of energy shipments through the Strait of Hormuz.

Because the Philippines is a net importer of petroleum products, with a heavy reliance on Middle Eastern supplies, these geopolitical shocks translate directly to higher domestic costs.

Transport group Pasang Masda requested the President to reinstate the one-peso fare increase that was suspended in March. This request comes on the heels of this week’s price hike where diesel increased by more than P4 per liter. Ms. Castro said that this is also part of the ongoing review.

“Again, Secretary Lopez also mentioned that this is being studied simultaneously at this time to ensure that the assistance we provide to our fellow citizens in the transport sector is appropriate, so they are not left behind. Our support for our fellow citizens who are consumers also continues,” she said.

This week, major retailers like Seaoil Philippines, Inc. and Shell Pilipinas Corp. raised pump prices by P1.00 for gasoline, P4.60 for diesel, and P2.30 for kerosene.

In April, the government temporarily suspended the excise taxes on kerosene and liquefied petroleum gas (LPG) for three months to cushion the impact of higher oil prices triggered by the Middle East conflict. However, the excise tax rates on kerosene and LPG reverted to their original levels on July 8 after the average Dubai crude oil price fell below the threshold set under the law.

Ms. Castro said the government is still studying the removal of excise taxes for gasoline and diesel.

“As of now, no update has been relayed to us,” she said.

Sought for comment, Jose M. Layug, Jr., executive board member of the Philippine Energy Research and Policy Institute, said the government appears more prepared this time in responding to oil market disruptions.

“While the government is better prepared with its response and assistance programs, it is really imperative to fast-track the transition to other forms of transportation that rely less on oil,” Mr. Layug told BusinessWorld over Viber.

He said that short-term interventions will not solve the country’s long-standing vulnerability to global fuel shocks.

“We need to shift to electric vehicles, both for private and public sectors, and improve our public transportation system to ensure lesser impact to the Filipino consumers and riding public,” he added.

As of July 10, the national fuel inventory stood at approximately 47.87 days of supply, an improvement from the previous 46.50 days. This inventory is supported by an average daily demand of roughly 78.08 million liters as of March 2026.

Broken down by product, the country maintains 48.17 days of gasoline, 45.69 days of diesel, and a substantial 148.98 days of kerosene. Other critical fuels like jet fuel and fuel oil have supplies lasting 80.09 days and 33.37 days, respectively, while liquified petroleum gas (LPG) inventory is at 39.51 days.