Fuel hikes to ease next week as global oil prices soften
Published Mar 27, 2026 01:05 pm
Public utility vehicles (PUVs) continue to ply their usual routes along a busy street in Davao City on Thursday, March 26. Despite a nationwide strike called by various transport groups to protest skyrocketing fuel costs, Davao’s transport sector remained largely operational, though some drivers have reportedly opted to stop driving as fuel hikes continue to eat into their daily earnings. (Photo by Keith Bacongco I MB)
Fuel prices are expected to offer a slight reprieve to motorists next week following a period of aggressive “big time” hikes, as easing geopolitical tensions in the Middle East begin to cool global energy benchmarks.
According to industry data based on the four-day trading Mean of Platts Singapore, gasoline prices are projected to remain flat or see a minimal increase of up to ₱3 per liter.
Diesel, a critical fuel for the nation’s public transport sector, is expected to maintain a double-digit price hike, in the range of ₱11 to ₱12 per liter, as the supply landscape remains significantly tighter than that of gasoline.
The projected price adjustments come as the premium on crude oil softens. Market analysts attributed the shift to a perceived de-escalation of conflict in the Middle East, which has tempered fears of a major supply disruption.
While price levels remain elevated by historical standards, the downward pressure on crude benchmarks has allowed gasoline prices to stabilize. Diesel remains an outlier, however, as global inventories for middle distillates continue to struggle against robust demand and structural supply constraints.
In response to the persistent volatility, the Department of Energy (DOE) has moved to bolster the nation's strategic reserves. Through a coordinated effort involving the Philippine National Oil Co. (PNOC) and its exploration arm, PNOC-EC, the government recently secured 142,000 barrels of diesel. This acquisition represents a fraction of a broader target to secure two million barrels of additional stock under an emergency energy security program intended to safeguard essential economic activities from price shocks.
While the government’s recent diesel acquisition covers less than 24 hours of national fuel consumption, the private sector has also moved to secure alternative supply chains.
Petron Corp., the country’s largest refiner, recently received approximately 700,000 barrels of Eastern Siberia-Pacific Ocean blend crude from Russia. The shipment was delivered to Petron’s refinery in Bataan, a facility that accounts for roughly 40 percent of the Philippines' total fuel requirements.
To ensure the continuity of these shipments amid global geopolitical sensitivities, Petron is expected to seek formal government backing for a 30-day waiver from the US Treasury Department. Such a clearance would provide the refiner with a legal shield against Western sanctions currently targeting Russian energy exports.