The Philippines is bracing for a significant surge in fuel prices, with diesel expected to surpass P130 per liter and gasoline exceeding P100 per liter, as the ongoing turmoil in the Middle East exacerbates a global oil crisis. According to data released by the Department of Energy (DOE) on Tuesday, March 24, 2026, the agency forecasts increases of P15 to P18 per liter for diesel, P8 to P12 per liter for gasoline, and P12 to P22 per liter for kerosene.
Current and Projected Price Ranges
From March 17 to 23, 2026, diesel prices ranged from P92 to P126 per liter, gasoline from P74 to P100 per liter, and kerosene from P100 to P144 per liter. Due to this week's anticipated hikes, diesel is projected to reach P107 to P144 per liter, gasoline P82 to P112 per liter, and kerosene P111 to P165 per liter, marking a sharp escalation that could strain household and business budgets across the nation.
Factors Behind Higher Prices in the Philippines
Energy Secretary Sharon Garin highlighted several reasons why fuel prices in the Philippines are comparatively higher than in other Asian countries during this global oil crisis. "First, many of these countries have subsidies. This means they subsidize the price. When you buy at a gas station, the government pays part of the cost so you don't face such high prices. I think Thailand, Malaysia, and Indonesia have this system," stated the secretary.
Garin also noted that the Philippine oil industry lacks direct government price control due to the Oil Deregulation Law, with competition among oil companies being the primary mechanism to lower prices. This regulatory framework contrasts with subsidized markets, potentially leaving consumers more vulnerable to international price fluctuations.
Supply and Government Measures
As of March 20, 2026, the country's oil supply is estimated to last for 45 days. To bolster reserves, the government is actively pursuing the purchase of two million barrels of diesel, valued at over P20 billion, which would add an extra 10 days to the current stockpile. This strategic move aims to mitigate supply shortages and stabilize the market amid rising global tensions.
Public Advisory and Conservation Efforts
Secretary Garin has issued a call to the public to practice fuel conservation and avoid panic buying or hoarding, which could disrupt the national supply chain. She emphasized that responsible consumption is crucial to maintaining adequate fuel availability for all sectors, from transportation to agriculture. The DOE continues to monitor the situation closely, urging cooperation from both consumers and industry stakeholders to navigate this challenging period.
