The country’s competition watchdog is intensifying its scrutiny of domestic fuel prices to shield consumers from unwarranted hikes triggered by escalating tensions in the Middle East.

In a statement, the Philippine Competition Commission (PCC) said it is monitoring the market behavior of local oil companies to prevent potential exploitation amid continued pressure on global energy markets.

While fuel costs are primarily driven by global supply and demand, the PCC said a prolonged period of price hikes may incentivize some firms to take advantage of the situation by adjusting prices beyond what current conditions justify.

Industry players may abuse their dominant position or enter into anti-competitive agreements to exploit the tight fuel supply.

This uneven competitive landscape is expected to influence unwarranted adjustments in fuel prices, the PCC said.

Apart from fuel markets, the PCC said it is also monitoring developments in downstream markets, which rely on fuel as an input to production, to uphold fair competition.

Under the Philippine Competition Act, the PCC is tasked with ensuring that competition remains fair while also preventing market outcomes from being distorted by anti-competitive conduct.

“While the PCC does not regulate or set fuel prices, it stands ready to provide competition advocacy to other government agencies and regulators to ensure that policies meant to address these market stresses are least distortive to competition,” the agency said.

The PCC said it is now working hand in hand with the Department of Energy (DOE) to foster robust oversight of the domestic fuel industry.

The commission signed a memorandum of agreement with the DOE in 2019 to establish formal mechanisms for information sharing, technical coordination, and enforcement support.

“Such framework reinforces the PCC’s ability to monitor energy-related markets and take appropriate action when necessary,” it said.

In order to prevent anti-competitive conduct such as collusion or exclusionary practices among market participants, the PCC is urging the public to report any information or evidence of these schemes through the agency’s case reporting system.