Close to P5 per liter gas price hike looms

MANILA, Philippines — Motorists should expect an increase of almost P5 per liter at the pump next week, amid supply fears caused by escalating tensions in the Middle East.

Citing geopolitical conflict, the Department of Energy (DOE) has indicated per-liter price hikes of P2.50 to P3 for gasoline, P4.30 to P4.80 for diesel and P4.25 to P4.40 for kerosene.

The estimates reflect the trading results in the global oil market over the past four days.

Yesterday’s trading would determine the final price adjustments, which will be announced on Monday and will take effect the following day.

“A major oil price shock is looming, as the Israel-Iran conflict threatens critical global shipping passage,” Oil Industry Management Bureau assistant director Rodela Romero said.

The market is on edge as the persistent tensions abroad could disrupt trade flows in the Strait of Hormuz, a major trade route for global oil and gas shipping.

Jetti Petroleum president Leo Bellas, meanwhile, said prices also spiked on fears that US involvement in the war could escalate the conflict and lead to direct attacks on energy infrastructure.

Given this development, the DOE has said the government is ready to provide fuel subsidies to public utility vehicles should the situation worsen.

“Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way that minimizes disruption to our economy,” DOE officer-in-charge Sharon Garin said.

Fare hike petitions

The Land Transportation Franchising and Regulatory Board (LTFRB) asserted it was “not in a rush” to decide whether or not to approve petitions for increase in fares in public utility vehicles (PUV), amid fears of an upcoming surge in fuel prices.

“We want to be clear: no fare increase has been approved at this stage,” LTFRB Chairman Teofilo Guadiz III said, adding, “We are not rushing into a decision.”

The agency would await the “outcome of an ongoing economic impact study by the National Economic and Development Authority,” which he said would “serve as the basis for any future decision on fare adjustments.”

The LTFRB added it would be “committed to a data-driven, balanced approach that considers both the economic realities of operators and the financial welfare of commuters.”

Guadiz issued the statement following petitions from transport groups for a fare hike, which the LTFRB said could be set to P1 based on earlier reports.

The LTFRB explained the proposed fare hike could have been driven by “global supply disruptions stemming from the ongoing war in Ukraine and heightened geopolitical tensions in the Middle East, including the conflict between Iran and Israel.”

Meanwhile, former House deputy minority leader and Bayan Muna representative Carlos Zarate urged yesterday the incoming Makabayan bloc congressmen to immediately refile and prioritize the comprehensive Lower Oil Prices Bills Package, as oil prices threaten to surge due to escalating tensions between Israel and Iran.

With projections showing potential increases of up to P4 per liter for diesel and over P3 per liter for gasoline, Zarate emphasized the urgent need for legislative intervention to protect Filipino consumers from the devastating impact of another oil price crisis.

“The continuous increase in oil prices did not only affect the transportation sector, but also the basic necessities of the people. We need to act now to protect the people against opportunist oil companies,” he said.

Zarate outlined the five critical measures that comprise the Lower Oil Prices Bills Package previously filed by Bayan Muna: House Bill 400 (Lower Oil Price Bill) removes excise tax and VAT on petroleum products; HB 3003 (Renationalize Petron Bill), returns the country’s largest oil refinery to state control; HB 3004 (Oil Price Unbundling Bill), mandates transparency in oil pricing mechanisms; HB 3005 (Centralized Procurement of Petroleum Bill), establishes government bulk purchasing and HB 3006 (Downstream Oil Industry Regulation Bill), strengthens oversight of oil companies.

“For over 25 years since oil deregulation, Filipino consumers have been at the mercy of foreign oil cartels and their local partners. While these oil companies are earning huge profits, the people continue to suffer from high prices of oil products,” Zarate said.

He specifically highlighted the importance of the Oil Price Unbundling Bill, noting that transparency in pricing mechanisms is essential for consumer protection.

“We have been kept in the dark for too long about how these oil companies determine their prices and profit margins. We cannot continue to play blind from these abuses while the people drown in expenses,” Zarate said.

He challenged the House leadership and the DOE to actively support these legislative measures, calling for their immediate certification as urgent by the President, given the current global oil crisis.

“The government cannot remain passive while oil companies continue their predatory pricing practices. There is a need for immediate action to give true convenience to the people who continue to suffer difficulties from high prices of basic commodities,” Zarate said.

The call comes as the DOE appeals to oil companies for staggered price adjustments while global crude prices remain volatile due to Middle East tensions, with Dubai crude already reaching $73 per barrel as of recent DOE data. — Ghio Ong, Jose Rodel Clapano