DOE caps diesel hike at PHP 7.32 per liter

MANILA — The Department of Energy has capped fuel price increases at PHP 6.80 per liter for gasoline, PHP 7.32 per liter for diesel, and PHP 4.22 per liter for kerosene for July 28–Aug. 3.

Energy Secretary Sharon S. Garin said oil companies may impose smaller adjustments but cannot exceed the limits announced by the department.

The increases will directly raise transportation and operating expenses for households and businesses, with the higher cost of moving people and goods potentially spilling over into consumer prices.

The price pressure also underscores the Philippines’ exposure to global supply shocks because the country imports most of its petroleum requirements.

Garin attributed the adjustments to the continuing conflict in the Middle East, which has kept international oil markets under pressure.

Despite the steep increases, the DOE said the country’s fuel supply remained sufficient and that no disruption had been recorded.

Energy Undersecretary Sandy Sales said the Philippines had an average fuel inventory of almost 45 days.

Gasoline stocks were estimated to last 45 days, while diesel inventories were sufficient for around 42 days.

Kerosene stocks were equivalent to 126 days, while jet fuel inventories were sufficient for 77 days.

Fuel oil stocks were estimated to last nearly 38 days, while liquefied petroleum gas inventories were sufficient for almost 36 days.

Sales said international oil prices fell during trading on Friday and Monday following developments involving the Middle East conflict.

He cited China’s participation in third-party negotiations through Pakistan as one of the positive signals affecting the international market.

Sales also pointed to the halt in missile strikes between the United States and Iran as another development that helped pull prices lower.

“A glimmer of hope there that potentially this week will bring us lower prices for next week,” Sales said.

Sales acknowledged during the question-and-answer portion that it was too early to determine whether domestic pump prices would decline the following week.

Future price movements will continue to depend on geopolitical developments and changes in international petroleum markets, he said.

Oil Industry Management Bureau Director Rino Abad said around PHP 374 million had been distributed through the government’s PHP 10-per-liter diesel discount program for eligible jeepneys and UV Express vehicles.

The program had reached its 15th week, with subsidy releases averaging around PHP 50 million per week.

Around 90,763 registered vehicles had used the discount, a sharp increase from 1,671 beneficiaries during the program’s first week.

The increasing number of beneficiaries reflects the importance of targeted fuel assistance in helping public utility vehicle operators manage higher diesel costs without immediately transferring the full burden to commuters.

The DOE said it had not received instructions to increase the diesel discount from PHP 10 to PHP 15 per liter.

Any increase in the discount would depend on the availability of funds and coordination with the Department of Transportation, the agency said.