Pump prices continue to rise; diesel may top PHP 170 per liter

Pump prices are expected to continue to go up this week, with diesel likely to go above PHP 170 per liter as the Iran war enters its second month.

In separate advisories on Monday, some major oil companies announced a fresh round of hikes with diesel prices set for another double-digit increase starting Tuesday (April 7).

Shell Pilipinas Corp. will raise prices by PHP 19.80 per liter for diesel, PHP 5.90 per liter for gasoline, and PHP 9.10 per liter for kerosene.

Petron Corp. is set to hike diesel prices by PHP 18.80 per liter, gasoline by PHP 4.90 per liter, and kerosene by PHP 8.10 per liter.

Seaoil Philippines, Inc. will implement an increase of PHP 17.95 per liter for diesel, PHP 4.90 per liter for gasoline, and PHP 8.10 per liter for kerosene.

On the other hand, Jetti Petroleum, Inc. will hike prices by PHP 18.60 per liter for diesel and PHP 5.40 per liter for gasoline starting Friday, April 10.

“We believe the delayed implementation will help cushion the impact of the significant increase, particularly on diesel,” Jetti President Leo P. Bellas said in a Viber message.

Other oil firms have yet to announce their respective price adjustments as of press time.

With the latest price hikes, diesel prices may go up as high as PHP 172 per liter while gasoline prices may hit nearly PHP 120 per liter.

The Philippines is a net importer of crude oil and relies heavily on crude supplies from the Middle East, the world’s top oil-producing region that is currently being disrupted by the Iran war. This dependence makes the country highly vulnerable to global crude price swings.

Since the outbreak of the US-Israel attack on Iran on Feb. 28, the increases in diesel prices have already totaled PHP 100.05 per liter, while gasoline and kerosene have surged by around PHP 52.30 and PHP 82.40 per liter, respectively.

These price spikes are partly linked to the ongoing conflict in the Middle East, brought by Iran’s blockage of the Strait of Hormuz, a strategic waterway and critical chokepoint that handles a significant share of global crude shipments.

The Department of Foreign Affairs last week said Iran had agreed to allow Philippine‑flagged vessels to transit the waterway.

While the deal could reduce the risk of fuel supply disruption, Energy Secretary Sharon S. Garin said this would not immediately lower pump prices, as oil prices remain elevated due to geopolitics and global trading conditions.

As of March 27, the country’s average petroleum supply is equivalent to 50.94 days.

Jose M. Layug, a former Energy undersecretary and executive board member of the Philippine Energy Research & Policy Institute, said market pricing would remain volatile as long as the Middle East conflict persists.

“The oil market continues to be volatile and reacts to a drawn-out Middle East conflict. The best long-term solution for the Philippines is still to reduce reliance on the use of oil,” he told BusinessWorld.

Albert Dalusung III, energy transition advisor at Institute for Climate and Sustainable Cities, said the Philippines is not under a dire situation with the supply in place, but warned that prices have little room to decline.

“It’s not dire, but it’s a very difficult situation because we don’t know where the prices will go. As for me, I’m hopeful that this will end, and I hope that we can learn from it,” Mr. Dalusung told ANC’s Headstart on Monday.

He said the Philippines must develop its indigenous resources, such as renewable energy, to reduce reliance on imported energy resources. — Sheldeen Joy Talavera, Reporter