TENSIONS PUSH PRICE SPIKES: City rolls out fuel aid as pump prices soar

By Rjay Zuriaga Castor and Jennifer P. Rendon

Around 1,700 public utility vehicle drivers and operators in Iloilo City are set to benefit from a new fuel subsidy as the city government seeks to cushion the impact of rising petroleum prices amid global supply disruptions triggered by ongoing tensions in the Middle East.

Under the program, drivers and operators will receive PHP 1,500 worth of fuel per month through their transport cooperatives and corporations.

The initiative covers traditional jeepneys, modernized jeepneys and taxis, with an initial PHP 3 million allocated from the 2026 budget of the Atipan Center.

“We launched this initiative because we recognize the significant impact that the Middle East conflict has on our transport sector. From drivers, operators, and cooperatives to ordinary commuters, everyone is feeling the effects of rising petroleum prices,” Iloilo City Mayor Raisa Treñas-Chu said.

Oil prices in the Philippines have been rising sharply due to escalating Middle East tensions.

The latest round of increases, effective March 3, raised gasoline by PHP 1.90 per liter, diesel by PHP 1.20 and kerosene by PHP 1.50.

Military standoffs between the United States and Iran have disrupted shipping through the Strait of Hormuz, a critical chokepoint through which roughly 20 percent of the global oil supply passes.

The Department of Energy expects further weekly price increases, which may be staggered to ease the burden on consumers.

In Iloilo City, some gas stations have already reflected the surge.

A gasoline station in the Jaro district saw a steep price jump following the March 3 adjustments. Pre-increase prices stood at PHP 55.70 per liter for diesel, PHP 55.10 for premium and PHP 54.10 for regular.

By March 6, prices had climbed to PHP 67.90 per liter for diesel, PHP 59.20 for premium and PHP 58.70 for regular.

Some stations across the city now charge as much as PHP 75 per liter for diesel, PHP 70 for premium and PHP 69 for regular, reflecting sharp increases across all fuel types.

“While this is not a sure fix, we will do what we can; the Iloilo City Government can start by extending subsidies,” Treñas-Chu stressed.

The Atipan Center, the city government’s one-stop hub for social services launched in August 2025, will oversee the distribution of the subsidy, according to the mayor.

To qualify, vehicles must operate within Iloilo City.

Drivers and operators must be bona fide city residents with valid driver’s licenses, while operators must hold a Certificate of Public Convenience or a valid franchise and have their public utility vehicles listed in the validated master list of the Land Transportation Franchising and Regulatory Board.

Treñas-Chu said the fuel subsidy coupons will be valid until Dec. 31, 2026, but their issuance will depend on fund availability.

She added that the program will be suspended once the national government implements policies to ease the impact of rising fuel prices.

The city government clarified that gas station operators were not consulted prior to the rollout, but a public procurement process will be conducted to select a petroleum service provider.

Under the arrangement, the chosen provider will submit billing statements for processing and payment through the Atipan Center.

The city government is also considering extending a fuel subsidy ranging from PHP 500 to PHP 1,500 to tricycle drivers with valid franchises.

DOE WARNING 

Amid projected fuel price increases, the Department of Energy warned gasoline stations against hoarding and profiteering.

Energy Secretary Sharon S. Garin said Friday that gas stations may increase the prices of diesel, gasoline or kerosene only once a week, every Tuesday, unless the agency allows otherwise.

“Kaya bantayan n’yo po. May mga ibang gas stations na everyday inaakyat ang presyo. Bawal po ‘yan. Abuso po ‘yan. You’re taking advantage of the current problem of the country. You’re making it worse for other people,” she said.

Garin said such abuses could be reported to their office.

She pointed out that it does not help when some people take advantage of the current situation.

“That’s immoral already. So, let’s report it. We have hotlines. You can go to our social media – Facebook – or email or tawagan n’yo po kami,” she said.

Garin said President Ferdinand R. Marcos Jr. had instructed them to reprimand and file cases against those involved in profiteering and hoarding of fuel.

“That’s not a Filipino way. We should be helping each together. ‘Yang mga hindi sumusunod and who are taking advantage of the situation, hindi maka-Pilipino ang mga ‘yan,” she said.

It was learned that while fuel prices usually range from PHP 56 to PHP 61 per liter for diesel, some gas stations in Iloilo were seen raising prices from PHP 69 to PHP 75 per liter.

Other gas stations said they had already run out of fuel.

“I have our field office investigate it. We would check gasoline stations if how many times did they increase their fuel for this week because that’s not allowed,” she said.

Garin urged the public to send pictures and receipts to support their complaints.

“We will bring the police and the DOE reprimand and file cases against them,” she said.

Garin said she met with DOE teams to strictly monitor gas stations against profiteering.

While DOE personnel may not be enough to monitor and enforce the law, she said the Department of the Interior and Local Government, through mayors, and the police are willing to help.

Meanwhile, Garin refused to make projections on fuel price increases amid the continuing conflict in the Middle East.

“Let’s wait for the international market to close today (March 6). If I announce now, I might be giving you the wrong numbers. I don’t give projections,” she said.

Garin said the government has already laid out a long-term strategy in case the Middle East conflict persists.

“We will make sure that we have enough supply and keep the prices moderate,” she said.

Garin said they are also mulling assistance for public utility vehicle drivers and farmers.

“We’re preparing for moderate to worst case scenario,” she said.