DOE, fuel retailers huddle to find ways to soften local blow
Energy officials and oil industry executives are set to meet today, June 23, to explore ways to mitigate the domestic impact of a potential oil price surge, following the United States’ direct involvement in the Israel-Iran conflict.
The meeting, convened by the Department of Energy (DOE), became more urgent after the US launched airstrikes on at least three nuclear facilities in Iran—a move confirmed by President Donald Trump on Saturday evening (Sunday morning in Manila).
“This development significantly expands the scope of the conflict,” Leo Bellas, president of Jetti Petroleum, said, adding that it could trigger higher global crude prices, along with rising insurance premiums and freight costs.
Price surge coming
Despite the geopolitical flare-up, fuel price increases scheduled for implementation tomorrow, Tuesday, remain, based on earlier data — specifically the Mean of Platts Singapore (MOPS) averages from June 16 to 20, prior to the US strikes.
Price hikes were expected to range between P4.90 to P5.10 per liter for gasoline, and P3.20 to P3.40 per liter for diesel, Bellas said.
“The immediate concern is how to implement this week’s fuel price hike in a staggered manner,” he said. Fuel companies may offer temporary relief to consumers, such as discounts or promotional campaigns at the pump.
However, Bellas cautioned that freight and insurance adjustments could follow swiftly as global oil markets react to the expanded conflict.
World oil prices could rise further once trading resumes. The potential increase in premiums and freight — due to heightened security risks — is likely to be factored into future domestic price movements, he said.
Farmers sound the alarm
The Kilusang Magbubukid ng Pilipinas (KMP) have raised concern over the mounting cost burden on farmers, who heavily rely on diesel for land preparation, irrigation and transporting produce.
KMP Chairperson Danilo Ramos said a farmer using about 600 liters of diesel per cropping season, who currently spends P31,000, could see costs rise by at least P3,000.
“Many of our farmers are already buried in high-interest loans,” Ramos said. “A price spike could push more to either borrow again or abandon planting altogether.”
Safety nets in place
To cushion the broader economic fallout, the DOE reiterated that fuel assistance programs will be automatically activated should global oil prices breach the $80 per barrel threshold — a trigger designed to contain inflationary pressures on basic goods and services.
Under the 2025 General Appropriations Act, P2.5 billion is earmarked for fuel subsidies to public utility drivers, taxis, ride-hailing vehicles, and delivery services, to be implemented via the Department of Transportation.
The Department of Agriculture has also allocated P585 million in aid to support farmers and fisherfolk affected by rising fuel prices.
For the week of June 3 to 9, average retail fuel prices in Metro Manila stood at P52.20 per liter for gasoline (RON 91), P53.65 for diesel, and P68.42 for kerosene, based on DOE monitoring.
