Shell Pilipinas Corporation said prolonged fuel price controls could conflict with the principles of a deregulated downstream oil market, even as the company continues complying with government measures under the ongoing State of National Energy Emergency.

Speaking during Shell Pilipinas’ 2026 Annual General Meeting, President and CEO Lorelie Q. Osial said the company understands the need to protect consumers amidst heightened oil market volatility and rising fuel prices.

“At the same time, it is important to acknowledge that sustained price controls can be at odds with the principles of a deregulated market, which relies on competition, transparency, and policy predictability to attract long-term investment,” Osial said.

The government earlier implemented temporary interventions such as weekly fuel price adjustment caps, targeted discounts for public utility vehicles (PUVs) and TNVS drivers, and tighter supply monitoring as part of broader energy emergency measures.

Osial said Shell Pilipinas has continued operating “in compliance with the law and regulations” while coordinating closely with government agencies.

“We are supporting these measures, including what has now been implemented as weekly price adjustment caps,” she said.

She added that Shell has been leveraging its global trading network and supply chain capabilities to maintain fuel supply reliability despite the volatile operating environment.

“Markets function best when pricing signals reflect the underlying costs, the risks that go with it, and when they allow participants to plan, invest, and operate sustainably over the long term,” Osial said.

She also emphasized the importance of “clarity, consistency, and stability” in the policy environment to preserve investor confidence.

The remarks came as Shell Pilipinas reported stronger financial performance for 2025.

According to Osial, core earnings rose 28% year-on-year to PHP 3.3 billion, while net income increased 69% to PHP 2.1 billion. Free cash flow also improved to a PHP 2.1-billion surplus from a PHP 1.6-billion deficit in 2024, while debt declined by PHP 2.4 billion.

“2025 marked a clear step change for Shell Pilipinas’ performance and resilience,” Osial said.

Shell Pilipinas said growth was driven by stronger execution, tighter cost controls, improved capital discipline, and better integration across its business segments.

Fleet solutions and aviation each posted 11% growth, while commercial fuels increased 3%. Mobility volumes remained stable with improved earnings quality.

The company also credited the Davao Import Facility for improving supply reliability and competitiveness in Mindanao.

Looking ahead, Osial said Shell Pilipinas remains focused on building “a more resilient and future-ready business” amid continued geopolitical and market uncertainty.

“Our priority is to build a more resilient and future-ready business. One that consistently delivers strong cash generation, one that exercises disciplined capital allocation, and one that unlocks growth across our different businesses,” she said.

As the government balances consumer protection with market stability during the energy emergency, should fuel pricing interventions remain temporary to preserve long-term investment confidence in the downstream oil sector?

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