FILIPINO motorists and commuters face steep fuel price hikes next week, with fuel prices expected to surge by nearly P2 per liter this week, as the US-Israel war against Iran drives global oil prices higher, the Department of Energy (DOE) said.

According to the Director of the DOE's Oil Industry Management Bureau, Atty. Rino Abad, the projected increases reflect rising prices in the international oil market following escalating tensions in the Middle East. Early estimates show that diesel may increase by at least P19 per liter, gasoline by P9, and kerosene by P31, depending on final trading results and oil firms' pricing decisions.

Global oil prices surged after the United States and Israel launched military strikes on Iranian targets, stoking fears of a supply disruption in the region. Central among those concerns is the possible closure of the Strait of Hormuz — a vital shipping lane through which nearly a fifth of the world's oil passes. Energy officials warned that the Philippines, which heavily relies on imported oil from the Middle East, is particularly vulnerable to fluctuations in global fuel prices.

Oil Supply

On March 4, President Ferdinand “Bongbong” Marcos Jr. reassured the nation that the country has an ample and sufficient supply of fuel. “Our stockpiles are approximately 50 to 60 days for gasoline, fuel oil, and kerosene. We are okay for that period of time,” he stated.

Furthermore, Marcos added that if Dubai crude oil prices remain above $80 per barrel for an extended period, the government would implement a series of measures in response.

The first measure involves launching the Pantawid Pasada Program (PPP) to support transport workers, along with direct fuel and fertilizer subsidies for farmers and fisherfolk. Should prices continue to rise, the government may also introduce free bus rides on major routes and freeze public transport fares. Additionally, emergency powers are being sought to temporarily reduce excise taxes on petroleum products. Finally, an existing arrangement with oil companies ensures that any price increases will be rolled out gradually, cushioning the public from sudden economic disruption.

Government Implementation

On March 6, through a message addressed to the nation, Marcos ordered the temporary implementation of a four-day work week which started on March 9—a bid to conserve energy and cut fuel consumption amid soaring global oil prices, in order to optimize the use of public resources.

It was then followed by the release of a Circular Memorandum numbered 114, outlining that the directive applied to national government agencies, government-owned or controlled corporations, local government units, constitutional bodies, and state universities and colleges.

However, the four-day workweek will not apply to agencies providing essential and frontline services. Offices responsible for healthcare, public safety, and emergency response—including those under the Philippine National Police and the Bureau of Fire Protection—will continue to operate under regular working schedules to ensure uninterrupted service to public safety.

Alongside the four-day workweek order, Marcos also directed all government offices to cut electricity and fuel consumption by 10 to 20 percent. Agencies are required to keep their air-conditioning units at 24 degrees Celsius, switch off non-essential lights and equipment during lunch breaks and after office hours, and set devices to sleep mode when idle. Non-essential government travel and activities—including team-building events, study tours, and meetings that can be held online—are also temporarily suspended amidst the oil price surge.

Malacanang described the measure as part of a wider government effort to mitigate the surge of rising oil prices for Filipinos. Among the broader steps being considered are possible tax adjustments on petroleum products and fuel subsidies for the vulnerable sectors. 

Precautionary Measures

Finance Secretary Frederick Go assured the public that the government maintains an adequate oil buffer of approximately 50 to 60 days of national demand, providing a cushion against short-term price volatility. He added that the Economic Team is working with Congress to secure presidential authority to temporarily reduce excise taxes on fuel should Dubai crude prices breach the $80-per-barrel threshold—stressing that it serves as a precautionary measure, not an automatic one. 

"We remain vigilant, prepared, and committed to protecting the welfare of all Filipinos," Go said.

Hoarding and Profiteering 

Last March 7, the looming oil price hike had already sparked panic buying among motorists, with some rushing to fuel up ahead of the expected increases. A gasoline station in Fairview, Quezon City, ran out of diesel after being overwhelmed by the volume of customers filling up before the price surge. 

"Marami pa rin pong naghahanap ngayon. Wala na po kaming maibigay," a station attendant said. 

Despite the prohibition on hoarding, some motorists were observed loading up cans of fuel. The Department of Energy and the Philippine National Police have since been jointly conducting inspections and penalizing stations found to have prematurely raised prices, such as one in Tagum City, Davao del Norte, where diesel was reportedly sold at as high as ₱73 per liter — a ₱8 increase per liter above the prevailing price.