Local execs want timeline for fuel subsidy, rationing

CEBU CITY, PHILIPPINES — Cebu’s top local leaders are sounding the alarm against threats of fuel supply disruption and soaring prices. They said: Plans for fuel subsidy and rationing are not enough without a clear timeline.

During the Regional Development Council in Central Visayas (RDC-7) Full Council Meeting yesterday, Cebu City Mayor Nestor Archival and Governor Pamela Baricuatro highlighted the need to immediately lay down concrete timelines for fuel subsidy distribution and potential rationing measures.

Archival underscored the urgency of the situation, noting that fuel prices are expected to continue rising in the coming months. “We understand that from now until June, there is a constant increase in the prices,” Archival said.

He pointed out that diesel prices have already reached around P129 per liter, placing a heavy burden on drivers and transport operators. “Now, P129 is very high for the drivers,” he added, emphasizing the need for immediate government intervention.

The mayor questioned whether a fuel stabilization or rationing program is already in place, especially as supply concerns loom. “Do you have a plan for how you are going to ration if there is a time?” Archival asked.

He warned that without clear guidance, a supply shortage could trigger panic buying and long lines at gasoline stations, stressing that, beyond policy discussions, what local governments need now is a concrete timeline. “I think it’s very important that aside from the programs that we’re planning, we should have a deadline,” he said.

He proposed that cities be given structured schemes, such as designated fuel stations per barangay, to manage distribution in case rationing becomes necessary.

“We need to have that scheme. And we need it to be very, very clear,” he said.
Responding to the concerns, Desiree Joy O. Narvaez, director of the National Policy and Planning Staff (NPPS), said the government is currently drafting operational guidelines.

She confirmed that a “traffic light system” or trigger mechanism is being developed to determine when interventions such as fuel rationing will be activated. “One of which would be the situation where we would have to ration fuel,” Narvaez said.

She added that priority sectors have already been identified in case rationing is implemented. “Definitely, we would be prioritizing the food and health sectors when it comes to rationing,” she explained.

However, Narvaez admitted that the details, including timelines, are still being finalized. “We are currently working on the draft operational timeline…and we’re going to release it next week,” she said.

She noted that higher-level meetings are ongoing to finalize the plan, including discussions involving the Executive Secretary and President Ferdinand “Bongbong” Marcos Jr.

Moreover, the Department of Energy (DOE) is reportedly still finalizing its system for fuel rationing, including the guidelines on which agencies or entities will implement the measure.

A representative from DOE-7 noted that if any gas stations conduct early testing or piloting, local governments are expected to provide prior notice.

On the issue of subsidies, Narvaez said providing assistance to all fuel consumers would not be feasible due to limited government funds. “If it will be for everyone, that will be very difficult … we also have a limited fiscal envelope,” she said.

Instead, the government is looking at targeted subsidies for the most affected sectors, including drivers, farmers, fisherfolk and vulnerable households.

Narvaez said the broader public may benefit from the proposed suspension of excise taxes on fuel, which could reduce diesel prices by P6 per liter and gasoline by P10.

However, she acknowledged that the reduction may not be enough if global prices continue to surge. “We do recognize that that will not be enough,” she said.

She also clarified that the excise tax suspension has not yet been finalized and is still awaiting endorsement from the Development Budget Coordinating Committee.

Meanwhile, Baricuatro raised concerns about the uneven rollout of subsidies, noting that assistance has reportedly begun in Metro Manila but has yet to reach areas outside the capital.

“What is the timeline here? Because it’s already being given in Manila, but outside, there is none,” the governor noted.

In response, Narvaez said different agencies will handle the distribution depending on the sector, with the Department of Transportation covering drivers and the Department of Agriculture handling farmers and fisherfolk. She added that timelines for distribution will be coordinated with the respective agencies.

Despite these assurances, Archival and Baricuatro both maintained that local governments need immediate clarity as they prepare for a potential crisis.

DOE assures public: Fuel supply public

The Department of Energy (DOE) assured the public that the Philippines’ fuel supply remains stable, citing proactive government measures to strengthen reserves amid ongoing tensions in the Middle East.

During a virtual briefing last night, DOE Secretary Sharon Garin outlined the agency’s five key priority areas: oil and gas supply, electricity and power, consumer protection, energy and fuel efficiency, and inter-agency coordination.

On fuel security, Garin said the DOE, through the Philippine National Oil Company (PNOC), has procured 1.042 million barrels of diesel which is equivalent to 165.7 million liters for delivery through April to bolster national reserves.

“We identified the implementing agency, secured funding, streamlined procurement procedures, and sourced suppliers immediately following the President’s directive on the first day of the Middle East conflict to ensure a stable and sufficient oil supply nationwide,” Garin said.

The deliveries are scheduled in phases to maintain consistent availability amid global market uncertainties.

Garin said the secured volumes are also the result of sustained oil diplomacy led by the DOE and carried out with relevant government entities. This whole-of-government approach has helped translate high-level diplomatic engagement into concrete deliveries that will bolster domestic fuel availability in the weeks ahead.

The first shipment, consisting of 142,000 barrels or 22,578,000 liters from Japan, arrived in the Philippines on 26 March 2026. The remaining deliveries are set to arrive as follows:

•300,000 barrels (47,700,000 liters) from Malaysia/Singapore – early April
•300,000 barrels (47,700,000 liters) from North Asia/India – mid-April
•300,000 barrels (47,700,000 liters) from Oman/Singapore – end April

Taken together, these deliveries complete the 1.042 million barrels secured by the government to strengthen supply cover, support essential sectors, and help protect the domestic market from the effects of external disruption.

Garin reported improvements in fuel inventory levels from March 20 to 27, with total available days of supply across all petroleum products increasing from 45 days to 50.94 days despite ongoing consumption. Gasoline supply rose from 53 to 54 days; diesel from 45.82 to 46.93 days; kerosene from 97.93 to 107.83 days; jet fuel from 38.62 to 62.69 days; and LPG from 23.51 to 34.02 days.

She noted that minimum inventory levels typically range from 15 to 30 days, meaning current supplies provide ample lead time to replenish stock while consumption continues. “We are assured for now, but the future of the oil industry is not within our control,” Garin cautioned, urging the public to conserve fuel and electricity.

Addressing regional concerns, Garin mentioned that fuel supply and price adjustments may vary across the country, including in Cebu. “Estimates for pump prices are guides, but actual prices in Cebu or other areas may differ depending on the type of station and distributor,” she said, reminding consumers to anticipate regional variations.

Garin said that the DOE continues to track fuel market trends and weekly price adjustments, noting that gasoline prices have slightly decreased in some areas while diesel and kerosene prices continue to rise due to global market dynamics.

The agency reminded consumers that prices may vary by station and region, including Cebu. The DOE clarified that government-procured oil is primarily intended to secure supply, not directly intervene in pump prices.

The oil, she said will be distributed through existing commercial oil companies, which have the infrastructure to handle storage and delivery. “Our immediate focus is on ensuring sufficient supply to prevent service disruptions at gas stations,” she said

The agency emphasized that the energy emergency declaration under Executive Order 92 serves as a formal institutional measure. It establishes responsibilities, sets targets, and coordinates a whole-of-government response to strengthen fuel security.

Central to this effort is the “UPLIFT” package—Unified Package for Livelihoods, Industry, Food, and Transport—which ensures the continuity of essential services and provides targeted support to vulnerable sectors, including workers, farmers, commuters, micro, small, and medium enterprises, and overseas Filipino workers.

“The DOE continues to closely monitor agricultural inputs and food supply chains, recognizing their critical role in national stability during this global crisis,” Garin said, stressing that contingency measures remain in place should the situation escalate.