Energy Secretary Sharon Garin announced on July 28 that fuel prices in the Philippines will increase sharply, with gasoline rising by P6.80 per liter, diesel by P7.32 per liter, and kerosene by P4.22 per liter, effective the same day. The price adjustments stem from renewed volatility in the Middle East, which has kept global oil markets under pressure, according to Garin's press conference statement. The Philippines' heavy reliance on imported petroleum products makes local pump prices particularly vulnerable to global oil price swings, foreign exchange movements, and disruptions in international supply routes, especially through critical waterways like the Strait of Hormuz.
DOE Announces Specific Fuel Price Increases for July 28
In a press conference on July 28, Energy Secretary Sharon Garin announced the following maximum price increases for the week of July 28 to August 3:
- Gasoline: increase of P6.80 per liter
- Diesel: increase of P7.32 per liter
- Kerosene: increase of P4.22 per liter
The adjustments took effect on July 28. Before the latest adjustment, the Department of Energy's price monitoring showed common retail prices in Metro Manila at P71.80 per liter for gasoline RON95, P70.30 per liter for gasoline RON91, P88.40 per liter for diesel, and P117 per liter for kerosene for the week of July 21 to 27.
Middle East Tensions Drive Price Volatility
"These price movements continue to stem from the developments in the Middle East, which have kept global oil markets under pressure. If there's trouble in Ukraine or in the Strait of Hormuz, prices here are affected," Garin said in a mix of English and Filipino. "This is how vulnerable we are."
The latest increases follow last week's fuel price hikes, when gasoline prices rose by P3.65 per liter, diesel by P10.68 per liter, and kerosene by P11.77 per liter on July 21. Garin had said the increase was being driven by uncertainty from tensions involving Iran, Israel, and the United States, which have continued to affect the global oil market.
Fuel Supply Remains Sufficient Despite Price Increases
Garin said that fuel inventories remain "sufficient" at a "very healthy level" with no disruption to supply.
Energy Undersecretary Sandy Sales noted a "glimmer of hope" that fuel prices could decline next week. Progress in third-party negotiations, including the involvement of China and Pakistan, as well as the halt in missile strikes between Iran and the United States, helped pull down global oil prices in trading sessions on Friday, July 24, and Monday, July 27.
Metro Manila Retail Prices Before and After Adjustments
Despite intermittent easing in crude prices, local pump prices remain well above levels seen before fighting involving Iran and US-Israeli forces broke out on February 28. In the last full week before the conflict, DOE data showed common retail prices in Metro Manila at P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene.
Philippines' Import Dependence Amplifies Global Price Impact
The Philippines imports much of its fuel as finished petroleum products, including diesel and gasoline. This means local pump prices are more directly influenced by regional traded prices of finished fuels, especially the Mean of Platts Singapore, or MOPS, rather than Dubai crude alone.
Global oil prices have remained volatile as conflict in the Middle East continues to threaten key shipping routes. The Strait of Hormuz, the narrow waterway between Iran and Oman, remains one of the world's most important oil shipping routes. Any disruption to tanker traffic can quickly affect global crude and refined product prices.
FAQ
What fuel price increases took effect in the Philippines on July 28?
Gasoline prices increased by P6.80 per liter, diesel by P7.32 per liter, and kerosene by P4.22 per liter, as announced by Energy Secretary Sharon Garin on July 28.
Why are fuel prices rising in the Philippines?
Energy Secretary Sharon Garin stated that the price movements stem from developments in the Middle East, which have kept global oil markets under pressure, particularly tensions involving Iran, Israel, and the United States affecting key shipping routes like the Strait of Hormuz.
How do Metro Manila fuel prices compare to levels before the Middle East conflict?
Before fighting broke out on February 28, common retail prices in Metro Manila were P56 per liter for gasoline RON95, P54.70 per liter for gasoline RON91, P55 per liter for diesel, and P83.47 per liter for kerosene—significantly lower than current levels following multiple price increases.
