Oil firms agree to implement staggered fuel price hikes

National

IN a bid to cushion the impact of surging fuel costs on consumers, major oil companies in the Philippines have agreed to stagger this week’s fuel price hikes, following a sharp rise in global oil prices driven by escalating conflict in the Middle East.

The Department of Energy (DOE) confirmed that the phased implementation aims to “balance economic realities with the need to shield our people from sudden price shocks,” according to DOE Officer-in-Charge Sharon Garin.

Shell and Seaoil announced that starting Tuesday, June 24, pump prices will increase by P1.75 per liter for gasoline, P2.60 for diesel, and P2.40 for kerosene.

A second round of identical increases will follow on Thursday, June 26, bringing the total weekly hike to P3.50, P5.20, and P4.80 per liter, respectively.

Other oil firms—including Petron, Caltex, Jetti, Petro Gazz, Phoenix, PTT Philippines, Unioil, Total, Filpride, and Cleanfuel—have also committed to the staggered approach, though specific implementation details are still pending.

The DOE attributed the larger-than-expected price hikes to geopolitical instability, particularly after the United States launched airstrikes on Iranian nuclear sites.

The ongoing conflict between Israel and Iran has raised fears of disruptions in the Strait of Hormuz, a key global oil transit route.

In a Philippine Star report, Energy Undersecretary Alessandro Sales explained that the recent volatility is largely driven by speculative trading rather than actual supply shortages.

As of June 23, the average pump prices stood at P55.90 for gasoline, P53.40 for diesel, and P70.22 for kerosene. Dubai crude was priced at $75.16 per barrel—below the DOE’s $80-per-barrel threshold for triggering additional government intervention.

The DOE has urged oil companies to expand fuel discount programs for the transport sector and to exercise restraint in passing on costs to consumers.(Rey Niño P. Puso, PIT Comm Intern)