CEBU CITY, PHILIPPINES — The Department of Energy (DOE) on Monday announced a significant increase in fuel prices this week, with diesel expected to rise by more than ₱20 per liter, due to global supply uncertainties.
During a virtual press conference, DOE Secretary Sharon Garin said fuel prices vary among gas stations because of logistical costs such as transportation, insurance, and distribution expenses, particularly for stations located far from supply depots.
For this week, the announced fuel price adjustments are expected to range as follows:
• Gasoline: increase of ₱12.90 to ₱16.60 per liter
• Diesel: increase of ₱20.40 to ₱23.90 per liter
• Kerosene: increase of ₱6.90 to ₱8.90 per liter
The price adjustments will take effect on Tuesday once oil companies and fuel retailers implement the new rates.
Garin said that if diesel currently costs around ₱90 per liter in a particular gas station, the price could rise to approximately ₱110 to ₱113.90 per liter after the adjustment.
Because of the steep increase, some oil companies have agreed to stagger their diesel price adjustments to reduce the immediate impact on consumers.
“So far, only Total, Shell, Seaoil, Petron, and Flying V have committed to the staggering,” Garin said.
The DOE said these companies will implement gradual increases rather than a one-time price adjustment to help ease the burden on consumers, particularly public utility vehicle (PUV) drivers and transport operators.
“We have to commend those oil companies that offer lower prices, stagger their adjustments, and still provide bigger discounts,” Garin said.
Garin explained that the government cannot directly control retail fuel prices under the Downstream Oil Industry Deregulation Act of 1998, which allows petroleum products to be priced based on market conditions.
“On supply, we have control. On power, we have control. But the price of fuel is something the government cannot fully control because we are heavily dependent on imported oil,” Garin said.
Despite the looming increase, Garin urged the public to use fuel responsibly, emphasizing that the Philippines remains heavily dependent on imported petroleum products.
“Hindi pa tayo independent sa fuel supply. Kailangan pa rin nating mag-import ng diesel, gas, at kerosene,” she said.
She added that the government’s priority is to ensure that Filipinos can continue traveling and carrying out daily activities despite rising fuel costs.
“Ang mahalaga po sa amin ay makabiyahe pa rin ang mga tao, makasakay pa rin sa jeepney at bus, at makapunta sa iba’t ibang lugar,” Garin said.
The DOE has also warned against fuel hoarding, which Garin said could distort the market and negatively affect sectors that rely on daily fuel purchases, such as public transport drivers, farmers, and fisherfolk.
“We have activated our enforcement teams together with the LGUs and the Philippine National Police. Hoarding distorts the market. It is not fair to others, especially those who rely on daily fuel purchases,” she said.
To strengthen monitoring, the DOE said it is coordinating with local government units, the Philippine National Police, the National Power Corporation, and electric cooperatives.
The agency has also encouraged the public to report irregularities in fuel pricing and supply through the government’s eGovPH portal, which has already received hundreds of reports from consumers nationwide.
“As we all know, these are extraordinary times. That is why we are bringing out more information despite the oil deregulation law,” Garin said, adding, “We want teamwork so that everyone, including retail stations and consumers, can help discipline the market.”
Meanwhile, Garin assured the public that the country currently has sufficient fuel supply despite global tensions affecting oil shipments. “The most important thing today is that we have supply. There is no need to cause panic among our people,” she said.
The DOE is also closely monitoring developments in the Strait of Hormuz, a key global oil shipping route where about 20 percent of the world’s oil supply passes.
“We all know already what the Strait of Hormuz is, and about 20 percent of the world’s oil supply passes through that area. At the moment, it is still unsafe for oil tankers,” Garin said.
She explained that many vessels have avoided passing through the route due to security risks, which have increased shipping and insurance costs and affected global oil prices.
“Most ships do not want to cross because it is too risky. Risk entails cost. Insurance companies may refuse to insure the ships, crews may hesitate to board them, and transportation becomes very expensive because there is no guarantee the vessel can complete the journey safely,” she said.
Despite these challenges, Garin emphasized that the government continues to coordinate with oil companies and international suppliers to ensure stable fuel availability. “I will repeat: we do have supply,” she said.
The DOE also said it is accelerating renewable energy projects and maintaining supply partnerships with coal and natural gas providers, including the Malampaya Gas Field, to ensure electricity stability, while global fuel markets remain volatile.
Fuel subsidy program for drivers
To help ease the burden of rising fuel costs, the government will release P5,000 in fuel subsidy to 26,833 eligible PUV drivers and operators in Cebu next week.
Eligible beneficiaries include drivers and operators of jeepneys, buses, taxis and transport network vehicle services (TNVS). The subsidy, however, does not cover “habal-habal” drivers.
The fuel assistance, implemented by the Land Transportation Franchising and Regulatory Board (LTFRB), is part of the government’s fuel subsidy program aimed at supporting transport workers affected by the recent spike in oil prices.
Speaking during the regular session of the Cebu Provincial Board on Monday, LTFRB-7 Chief Transportation Development Officer Eugenio P. Ibo Jr. said the subsidy rollout will begin in regional offices about a week after its initial launch in Metro Manila.
Each qualified beneficiary will receive a one-time payout of P5,000. Ibo explained that both drivers and operators of PUVs are entitled to the subsidy under the program guidelines. “If a driver is also the operator of the vehicle, he will be entitled to receive both subsidies,” Ibo said.
During the discussion, Provincial Board Member Raymond Calderon raised the possible inclusion of habal-habal drivers in the fuel subsidy program, pointing out that in many areas, particularly in the provinces, habal-habal serves as a primary mode of transportation. “Kadaghanan baya sa…especially sa provinces is habal-habal jud ang priority,” said Calderon.
In response, Ibo said they may still receive assistance if they are beneficiaries of the Assistance to Individuals in Crisis Situation (AICS), which is distributed through the Department of Social Welfare and Development (DSWD).
“Actually Sir, ang mo distribute ani, if they’re part na of AICS, I think it would be justified nga maapil sila. Pero it’s through DSWD na,” he explained.
According to LTFRB data, Cebu accounts for the largest number of beneficiaries in Central Visayas with 26,833. Bohol has 2,886 qualified beneficiaries while Negros Oriental has 1,025, bringing the regional total to 30,744.
Subsidy distribution process
Ibo said the distribution of the subsidy will be done through fuel cards or direct transfers, depending on the existing accounts of beneficiaries.
Operators who already have fuel subsidy cards can receive the amount directly credited to their accounts.
For drivers, payouts will be facilitated through the Assistance to Individuals in Crisis Situation (AICS) program of the Department of Social Welfare and Development (DSWD).
LTFRB has also required operators to submit notarized lists of their drivers to ensure they are included in the master list of beneficiaries. The agency will then verify the information before the subsidy is released.
Board members’ queries
During the discussion, several Cebu PB members raised concerns about the fairness of giving the same subsidy amount to both drivers and operators.
Board Member Celestino “Tining” Martinez III said the PB invited national agencies to present their programs aimed at mitigating the effects of the Middle East conflict, particularly its impact on fuel prices and basic commodities.
Meanwhile, some Board members questioned whether operators should receive the subsidy since drivers are often the ones paying for fuel.
Board member Cesar Baricuatro pointed out that operators who own multiple units could potentially receive larger amounts.
“Subsidy for operators and drivers. Meaning to say, that if I have, for example, one bus, I operate one bus, and I have a driver. So, meaning dalawa sila tatanggap ng subsidy?” Baricuatro asked.
Baricuatro remarked: “It should be for the drivers lang…What suffers? Anong sina-suffer nila (operators)? Hindi naman sila nagbibili ng gasolina.”
Ibo acknowledged the concerns but said the program assumes that operators also bear operational expenses such as vehicle maintenance.
Board Member Lakambini “Neneth” Reluya also raised concerns that fare increases should no longer be necessary if drivers and operators are already receiving subsidies. She said the assistance should help cushion the impact of higher fuel costs without passing the burden to commuters.
Ibo responded that fare adjustments are determined by the LTFRB Board after balancing the interests of both commuters and transport operators. He added that the subsidy aims to help ensure the continued operation of public transport services.
The fuel subsidy program is an expanded version of the government’s Pantawid Pasada initiative first implemented in 2018 under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The program is implemented by the Department of Transportation (DOTr) through the LTFRB in partnership with the Department of Energy and the Land Bank of the Philippines.
It was designed to provide financial assistance to transport workers affected by rising fuel prices. In recent years, the program has been expanded to include additional transport stakeholders such as tricycle drivers and delivery riders.
For 2026, the government allocated P2.5 billion for the fuel subsidy program nationwide.
| Written by Mitchelle L. Palaubsanon and Jonnavie Villa/RAE
