The Department of Energy (DOE) on Tuesday assured the country there is adequate fuel supply, with a subsidy program on stand by if global oil prices keep surging as the war between Israel and Iran escalates further.
The agency said an inspection of oil depots is underway to ensure that oil companies comply with their mandate to maintain a 30-day inventory of crude oil and a 15-day inventory of finished petroleum products.
From Malacañang, President Ferdinand Marcos Jr. directed his Cabinet to monitor the Israel-Iran war and immediately implement measures, including fuel subsidies, should the need arise.
The administration is prepared to roll out fuel subsidies to sectors directly impacted by fuel price increases, specifically the transport and agriculture sectors, Palace Press Officer Claire Castro said.
Fuel subsidy trigger
Castro said Acting DOE Secretary Sharon Garin sought to activate the fuel subsidy program once the price of crude oil exceeded US$80 per barrel.
“The fuel subsidy is for public transport and fisherfolk, and we would need to advise the DA (Department of Agriculture) and the DOTr (Department of Transportation),” Garin said.
This is intended to prevent a domino effect that could drive up the prices of basic goods and services, she added.
Under the fuel subsidy program, financial aid amounting to P6,500 is provided to each affected driver of public utility jeeps, UV express, mini buses, buses, shuttle services, taxis, tricycles, full-time ride-hailing vehicles, and delivery services.
Farmers and fisherfolk who own agricultural or fishery machinery, either individually or through organizations, will each receive a P3,000 discount from contracted or accredited oil companies and gas stations.
As of June 16, 2025, the price of Dubai crude reached $73 per barrel.
The 2025 General Appropriations Act provides an allocation of P2.5 billion through the DOTr for fuel subsidies to drivers of public utility vehicles, taxis, ride-hailing services, and delivery platforms across the nation.
Agri support
Meanwhile, the Department of Agriculture has an allocation of P585 million to support farmers and fisherfolk in the agricultural sector who may be adversely affected by rising fuel costs.
“Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way that minimizes disruption to our economy,” Garin said.
The DOE appealed to industry players to implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices, to cushion the impact on customers.
Hefty price hike looms
Amid these developments, Leo Bellas, president of Jetti Petroleum Inc., warned that next week’s fuel price increase could be “hefty.”
“While it is still too early to provide figures, the potential increase in pump prices next week will be quite hefty if Monday’s MOPS (Mean of Platts Singapore) prices are used as a reference for this week,” he explained in a separate message.
Bellas said that if the price indicator’s Monday trading numbers are the basis, next week’s price increase could be more than P2 per liter for gasoline and more than P3 per liter for diesel.
However, he clarified that such projections may still be adjusted depending on developments that may happen with the remaining trading days this week.
“If Iran’s oil production and export facilities are spared in the ongoing conflict, there could be some price correction and easing down, but could remain elevated,” Bellas said.
The Jetti executive assured the public the company is closely monitoring events and their impact on the local fuel market, while also formulating contingency plans, particularly to ensure sufficient product inventories in their terminals.
Bellas said they are willing to stagger the implementation of price increases if the DOE requires them.
From June 3 to 9, the latest DOE monitoring showed prices per liter in the National Capital Region averaging at P52.20 for gasoline (RON 91), P53.65 for diesel, and P68.42 for kerosene.
The DOE said it will continue to monitor and analyze real-time global energy market data to inform timely, evidence-based policy responses to protect Filipinos from external shocks in the international oil supply chain.
At the same time, the DOE said the government is accelerating its energy efficiency initiatives and promoting the electrification and hybridization of the public transport sector. The move aims to reduce dependence on imported oil and enhance long-term energy resilience by supporting the deployment of electric vehicles and the needed infrastructure.
