The Department of Energy (DOE) has announced an increase in the price of petroleum products such as gasoline, diesel, and kerosene effective February 24, 2026. The sudden price hike is attributed to the continued volatility in the global oil market and not domestic forces. 

The department said the adjustment was driven by multiple factors, one of which is the escalating tensions between the United States and Iran. This included the recent naval drills conducted by Iran in the Strait of Hormuz on February 17-18 in joint exercises with Russia and China. While maritime flows have not faced significant disruption yet, the drills signal underlying supply risk premiums in energy markets.

Developments in the ongoing Russia-Ukraine conflict also contributed to the price increase. On February 18-19, explosions and a fire hit an oil depot in Russia’s Pskov region, though there was no reported sign of major disruption to Russia’s overall oil supply.

Meanwhile, US commercial crude oil inventories fell by 9.01 million barrels to 419.82 million barrels last February 13, according to data from the US Energy Information Administration. The DOE said the sizable decrease signals tightening near-term supply conditions and may provide short-term support to crude prices.

Despite this recent development, selected fuel stations still offer discounts for public utility vehicles ranging from PHP 0.50 to PHP 3.00, along with loyalty discounts for private motorists as a way to curb the effects of the sudden price increase.

The DOE said it is committed to monitoring global oil market conditions and coordinating with relevant agencies to ensure petroleum prices remain fair, reasonable, and compliant with existing regulations. The Department also reiterated its duty to ensure the quality and correct quantity of petroleum products in the local market.

With global tensions and supply conditions continuing to influence oil markets, how should consumers and transport operators prepare for potential further adjustments in fuel prices?

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