Motorists across the Philippines are bracing for another week of rising fuel costs, with price hikes taking effect at 6 a.m. On Tuesday, March 31, 2026. This marks the 12th consecutive week of increases for gasoline and the 14th for both diesel and kerosene, a trend directly linked to escalating tensions in the Middle East. The persistent increases are putting a strain on household budgets and raising concerns about broader economic impacts, particularly for the transportation and agriculture sectors.
The latest round of adjustments, announced Monday by several major oil companies, vary in amount. Petro Gazz implemented a P2.50 per liter increase for gasoline and a substantial P12.50 per liter hike for diesel. Petron Corp. Raised gasoline prices by P1.90 per liter, diesel by P11.90 per liter, and kerosene by P1.40 per liter. Seaoil Philippines Corp. Bucked the trend for gasoline, holding prices steady, but increased diesel by P12.50 per liter and kerosene by P2.00 per liter. Shell Pilipinas Corp. Reported the highest increases, with gasoline up P2.90 per liter, diesel up P12.90 per liter, and kerosene up P2.40 per liter. Unioil Petroleum Philippines Corp. Mirrored Petro Gazz’s increases, adding P2.50 to gasoline and P12.50 to diesel.
Geopolitical Factors Driving Price Increases
The primary driver behind these sustained price increases is the ongoing conflict in the Middle East and its impact on global oil supply routes. Specifically, Iran’s recent actions regarding the Strait of Hormuz are contributing significantly to market volatility. According to reports, Iran has effectively closed off the Strait of Hormuz, a critical waterway for global oil shipments, and has warned It’s ready to respond to any U.S. Military deployment in the region. This has raised fears of further disruptions to oil supplies.
Adding to the uncertainty, U.S. President Donald Trump, in a recent interview with the Financial Times, indicated a willingness to take control of Iranian oil resources, even hinting at the possibility of seizing the Kharg Island export hub, as reported by Reuters. Such a move would almost certainly exacerbate tensions and further destabilize the oil market.
Philippine Government Response and Energy Emergency
In response to the escalating situation, President Ferdinand “Bongbong” Marcos Jr. Last week declared a state of national energy emergency. This declaration authorized the implementation of the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT), a program designed to ensure energy supply stability and provide support to key sectors of the economy, including transportation, agriculture, and micro, small, and medium enterprises (MSMEs).
Malacañang, through the Department of Energy Secretary Sharon Garin, has maintained that the Philippines is not experiencing an oil supply crisis, but rather a disruption in prices due to the international developments. However, the continued price hikes are raising questions about the effectiveness of the government’s measures and the potential for broader economic consequences.
Impact on Key Sectors
The transportation sector is particularly vulnerable to these price increases. Jeepney drivers, already struggling with rising costs, may be forced to increase fares, impacting commuters. The agriculture sector also faces challenges, as higher fuel prices translate to increased costs for farm machinery, irrigation, and transportation of goods. This could lead to higher food prices for consumers.
Small businesses, especially those reliant on transportation, are also feeling the pinch. The UPLIFT program aims to provide some relief, but its impact remains to be seen. The program’s components include targeted subsidies and assistance programs for affected sectors.
Looking Ahead: Monitoring Global Developments
The situation remains fluid and highly dependent on developments in the Middle East. The Philippine government is closely monitoring the geopolitical situation and working with international partners to ensure a stable energy supply. The Department of Energy is expected to provide further updates on the situation and the implementation of the UPLIFT program in the coming days.
The next scheduled review of fuel prices is expected next week, and further increases are anticipated if tensions in the Middle East continue to escalate. Consumers and businesses are advised to prepare for continued volatility in the oil market and to explore ways to conserve energy and reduce fuel consumption.
This ongoing situation underscores the Philippines’ vulnerability to global oil price fluctuations and the importance of diversifying energy sources and investing in renewable energy technologies. The long-term solution to energy security lies in reducing dependence on imported fossil fuels.
We encourage readers to share their experiences and perspectives on how these fuel price hikes are impacting their lives in the comments below. Please share this article with your networks to keep others informed.
