Senator Sherwin Gatchalian has raised the possibility of a Senate investigation if local oil prices do not align with recent reductions in global crude costs. Speaking on Thursday, April 9, 2026, Gatchalian expressed growing concerns over potentially unfair pricing practices in the Philippine oil market.
Growing Concerns Over Price Discrepancies
Gatchalian, who chairs the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (Protect) Committee, emphasized that authorities are closely monitoring local oil price movements following observed declines in the international market. He warned that a lack of timely action could prompt congressional scrutiny.
"When prices rise in the international market, they increase immediately here. But when they fall, the decrease seems slow. We cannot simply accept this," Gatchalian stated in a radio interview.
The 'Rocket and Feather Effect'
Gatchalian highlighted the so-called 'rocket and feather effect,' where prices shoot up rapidly but descend sluggishly. This phenomenon has sparked questions about whether oil companies are fairly passing on price discounts to consumers.
He urged the Department of Energy (DOE) to ensure that local price adjustments accurately reflect global trends and suggested that companies failing to comply could face penalties.
"If prices do not go down, they should be punished. We will investigate this," he asserted.
Global vs. Local Price Dynamics
Despite global oil prices reportedly dropping from over $110 per barrel to around $93 per barrel due to easing geopolitical tensions, Gatchalian noted that this impact has not been fully felt at local gasoline stations. He stressed the need for stricter management under the current system.
Gatchalian pointed out that limitations imposed by the Oil Deregulation Law hinder the government's ability to scrutinize price structures. To address this, he mentioned proposing measures aimed at restoring government authority to review and monitor components of oil pricing.
Potential Government Intervention
Additionally, Gatchalian explained that declaring a national energy emergency could grant the executive branch broader powers to intervene when necessary, including steps to ensure fair pricing in the local market. This move underscores the ongoing efforts to balance market deregulation with consumer protection in the energy sector.
