TENSION HITS PUMPS: Hoarding, refueling rush as transport sector braces for oil price hike

By Rjay Zuriaga Castor

Motorists and gasoline stations in Iloilo City are bracing for the impact of a sharp spike in fuel prices as tensions escalate in the Middle East, triggering a wave of early refueling and fuel hoarding.

Several gas stations reported surges in vehicle traffic over the past few days as drivers rushed to top off their tanks ahead of expected price increases.

Pablo (not his real name), a pump attendant at a station near City Hall, said he had been serving close to 100 vehicles daily, most of them privately owned.

“Daw nagdamo gid ang nagapatughong kay siguro barato pa ang sa amon nga baligya. Pero may ara man iba nga gapangita pa gid iban nga mas barato,” he told Daily Guardian on Tuesday, June 24.

[It seems more people are coming to refuel—maybe because our prices are still relatively low. But some are still looking for even cheaper fuel.]

As of Tuesday, their station’s pump prices were unchanged since last week: regular diesel at PHP54.78, premium diesel at PHP62.84, regular gasoline at PHP56.45, and premium gasoline at PHP57.84.

A station along Delgado Street also noted a slight increase in foot traffic, especially since Monday night.

There, regular gasoline was priced at PHP54.45 per liter, premium gasoline at PHP55.45, and B3 diesel at PHP52.20—also unchanged for nearly a week.

Jeffrey Gonzaga, a traditional jeepney driver on the Leganes–Aquino Avenue route, said he refueled early and kept an extra supply as a precaution.

“Mas maayo na lang na nga makabakal na ko daad kay wala ta kabalo basi gulpi magtaas sunod inadlaw or semana,” he said.

[Better to buy now—we don’t know if prices will spike again in the coming days or next week.]

Gonzaga said even businesses far from the Middle East are being impacted, expressing hope that the conflict will de-escalate soon.

Perfecto Yap, president of the Association of Taxi Operators in Panay, said the taxi drivers and operators are primarily affected by the price hike compared to their modernized buses.

Yap is also in the Board of Trustees of the Western Visayas Alliance of Transport Cooperative and Corporation Inc., which currently has 14 transport cooperative members under its umbrella.

“We met yesterday initially with the core group, discussing the consequences of the price hike, which is really significant,t but this effect is greatly directed to the taxis that use gasoline, unlike the modernized buses that use diesel,” he said.

Yap added that despite the uncertainty of the situation, taxi operators are not advised to hoard fuel due to the potential for dangerous storage practices.

“Our operators do not have the capacity to hoard. Maybe what they can only get is one or two drums. But then it’s a very dangerous move on our part since this is flammable, if it’s not properly stored, instead of having savings, you’ll have more problems,” he stressed.

He added that they also want to avoid the risk of artificial shortages and panic buying in the transport sector.

“There’s an economic chain reaction. Eventually, some other people would even exploit the situation. Not only in the case of fuel oil, but also in the case of products using fuel oil,” he explained.

The surge in global oil prices follows a series of U.S. airstrikes on Iranian nuclear sites and Iran’s retaliatory actions, raising fears that Iran may close the Strait of Hormuz—a strategic passage through which 20% of the world’s oil supply flows daily.

Iran’s parliament has approved a proposal to block the strait, a critical choke point between Iran and Oman, heightening fears of supply disruptions.

To cushion the blow, the Department of Energy announced a staggered fuel price hike.

Effective June 24, oil firms raised pump prices by PHP1.75 per liter for gasoline, PHP2.60 for diesel, and PHP2.40 for kerosene.

A second round of similar increases is expected on June 26 or 27, potentially doubling this week’s total price hikes.

Though companies may vary slightly in schedule, they agreed to stagger the hikes to avoid price shocks.

On Tuesday, reports surfaced of a ceasefire between Israel and Iran, with both parties agreeing to halt hostilities after Israel accepted a ceasefire proposal in exchange for Iran ending its assaults.

DOE Officer-in-Charge Sharon Garin, in a press briefing, said the government is ready to manage the situation.

She confirmed that PHP2.5 billion in fuel subsidies has been allocated for the transport sector.

She also urged oil companies to offer discount schemes for public utility vehicle drivers and operators.

Despite fears over the Strait of Hormuz closure, Garin assured that the country’s fuel reserves are sufficient.

She added that the DOE is closely monitoring this week’s second round of oil price hikes and will meet with oil firms to evaluate whether adjustments can be postponed—especially in light of recent declines in global oil prices.