Motorists and consumers in the Philippines will face higher fuel costs at the end of the year, as major oil companies announced a price increase for two key products.
Price Adjustment Details
In a reversal from the previous week's reduction, oil firms are set to implement a price hike for diesel and kerosene. The increase is set at PHP0.60 per liter and will take effect on Tuesday, December 30, 2025, at 6 a.m.
Leading industry players Seaoil and Jetti Petroleum issued separate advisories on Monday, December 29, confirming the impending adjustment. Seaoil explicitly stated that the PHP0.60 per liter increase would apply to both its diesel and kerosene products. Notably, the price of gasoline will see no changes this week.
Reasons Behind the Fuel Price Hike
This price uptick marks a sharp turn from the PHP1.30 per liter decrease that was implemented just last week. Industry analysts and the companies themselves have traced the cause of this reversal to external market forces.
The primary drivers are ongoing geopolitical tensions and international sanctions. Developments in the conflict between Russia and Ukraine continue to influence global crude oil supply and pricing. Furthermore, tougher sanctions imposed by the United States on Venezuela have tightened the market, contributing to upward pressure on world oil prices.
Impact and Outlook
The year-end price increase will directly affect transportation costs, logistics, and household budgets, especially for those relying on diesel for public utility vehicles and kerosene for lighting and cooking. This move underscores the vulnerability of local fuel prices to volatile international events.
Consumers are advised to monitor official announcements from oil companies for future price movements, as the market remains sensitive to global political and economic developments.
