The Department of Energy (DOE) has set maximum fuel price increases of PHP 6.80 per liter for gasoline, PHP 7.32 per liter for diesel, and PHP 4.22 per liter for kerosene for the week of July 28 to August 3.

Energy Secretary Sharon S. Garin said oil companies may implement smaller increases but cannot exceed the permitted adjustments announced by the department.

Garin attributed the increases to the continued conflict in the Middle East, which has kept global oil markets under pressure.

She said the Philippines remains vulnerable to geopolitical disruptions because it imports most of its petroleum requirements. Rising fuel costs also increase transport expenses for households and businesses and may eventually affect the prices of goods and services.

Despite the price increase, the DOE said the country’s fuel supply remains sufficient and no disruption has been recorded.

Energy Undersecretary Sandy Sales said the country had an average fuel inventory of almost 45 days. Gasoline stocks were estimated at 45 days, while diesel inventories stood at around 42 days.

Kerosene stocks were equivalent to 126 days, jet fuel to 77 days, fuel oil to nearly 38 days, and liquefied petroleum gas to almost 36 days.

Sales also said international oil prices had fallen during Friday and Monday trading following recent developments involving the conflict.

He cited China’s participation in third-party negotiations through Pakistan and the halt in missile strikes between the United States and Iran as positive signals that affected market prices.

“A glimmer of hope there that potentially this week will bring us lower prices for next week,” Sales said.

However, he acknowledged during the question-and-answer portion that it remained too early to confirm whether domestic pump prices would decline in the following week, as movements would continue to depend on geopolitical developments.

Oil Industry Management Bureau Director Rino Abad, meanwhile, said around PHP 374 million had been distributed through the government’s PHP 10-per-liter diesel discount program for eligible jeepneys and UV Express vehicles.

The program had reached its 15th week, with subsidy releases averaging around PHP 50 million per week. Around 90,763 registered vehicles had used the discount, up from 1,671 beneficiaries during the program’s first week.

The DOE said it had not received instructions to raise the discount from PHP 10 to PHP 15 per liter. Any increase would depend on available funds and coordination with the Department of Transportation.

Will easing tensions in the Middle East translate into lower domestic fuel prices in the coming week?

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