Philippine Oil Firms to Stagger Fuel Price Increases Amid Global Volatility

MANILA – In a move aimed at alleviating the financial burden on Filipino consumers, oil companies in the Philippines have agreed to implement fuel price adjustments on a staggered basis, as announced by the Department of Energy (DOE) on June 23, 2025. This decision comes in response to ongoing global oil price fluctuations driven by geopolitical uncertainties and speculative trading rather than actual supply disruptions.

According to Sharon Garin, DOE Officer in Charge, and Undersecretary Alessandro Sales, the staggered implementation plan is designed to distribute price increases over a manageable period, thereby cushioning the impact on consumers. This agreement was reached during a meeting with representatives from the downstream oil industry, where the DOE emphasized the need for transparency in the implementation scheme, which must be submitted by the end of the day.

"We have also urged oil companies to increase the number of their retail stations offering fuel discounts to the transport sector," Garin stated. This initiative is part of a broader effort to support vulnerable groups amid rising fuel costs. The DOE plans to address these measures in detail during upcoming meetings with oil company executives.

As of June 23, 2025, the average pump price for gasoline in the Philippines stands at PHP 55.90 per liter, while diesel and kerosene average PHP 53.40 and PHP 70.22 per liter, respectively. Sales highlighted the importance of prudence among oil firms in passing on cost changes to consumers.

In light of the average price of Dubai crude oil, which is currently at USD 75.16 per barrel, the DOE is also actively monitoring trends in foreign exchange and global oil prices. This vigilance is crucial as the DOE prepares to implement safety nets, including fuel subsidies for public transport drivers and farmers, should crude oil prices exceed USD 80 per barrel.

Garin is scheduled to meet with officials from the Department of Transportation and the Department of Agriculture to discuss the rapid implementation of these subsidies. The DOE continues to encourage the public to adopt fuel conservation measures, such as carpooling and regular vehicle maintenance, to mitigate the impact of rising fuel prices.

This staggered approach to fuel price adjustments reflects the government's commitment to ensuring adequate domestic fuel supply while balancing the needs of consumers and the realities of the global market. The DOE remains focused on maintaining a stable energy environment in the Philippines, as fluctuations in oil prices pose challenges not only for consumers but also for various sectors of the economy.

Overall, the steps taken by the DOE and oil firms demonstrate a collaborative effort to address the challenges posed by fluctuating fuel prices and to protect the most affected sectors of society, including public transport and agricultural workers. The effectiveness of these measures will ultimately depend on ongoing monitoring and cooperation between the government and industry stakeholders.