Big-time fuel price increases are expected next week as tensions in the Middle East involving the United States, Israel, and Iran continue to escalate.
Based on the first three days of trading this week, oil industry sources estimate that gasoline prices may rise by P7.09 per liter, while diesel prices could increase by P15.33 per liter.
Official fuel price adjustments are typically announced every Monday and implemented the following day.
The Department of Energy (DOE) warned that pump prices could climb even higher due to global developments, including the reported closure of the Strait of Hormuz, a vital global shipping corridor for oil. The agency said it would appeal to oil companies to stagger the implementation of price hikes starting next week to ease the impact on consumers.
Earlier this week, oil firms raised pump prices by P1.90 per liter for gasoline, P1.20 per liter for diesel, and P1.50 per liter for kerosene on Tuesday, March 3, 2026.
To mitigate the impact of rising fuel costs, the government plans to provide fuel subsidies for public transport operators, farmers, and fisherfolk, and offer free bus rides for commuters.
President Ferdinand “Bongbong” Marcos Jr. earlier said the government is also considering the temporary reduction or suspension of excise taxes on fuel to cushion the impact of the price hikes. The Department of Finance (DOF) has yet to release estimates on the potential foregone revenues.
Tensions in the Middle East intensified over the weekend after US-Israeli airstrikes reportedly killed Iranian Supreme Leader Ayatollah Ali Khamenei, a development later confirmed by Iranian state media and celebrated by US President Donald Trump.
Trump said combat operations in Iran would continue until all objectives are achieved, noting that three US service members had been killed and that further casualties were likely.
