DOE to oil firms: Pace price hikes

The Department of Energy (DOE) is urging oil companies to implement any massive and sudden fuel price increases gradually to cushion the impact on consumers, as continued tensions in the Middle East and rising global oil prices exert upward pressure on local pump rates.

“As we face continued volatility in the global oil market, the Department of Energy is taking firm and proactive steps to protect the welfare of our people,” DOE Officer-in-Charge Sharon S. Garin said on Tuesday.

Garin said the agency is coordinating closely with industry players and is strictly monitoring oil inventories to safeguard energy security. She added that the DOE is also preparing targeted interventions for sectors most vulnerable to fuel price shocks.

A key priority, she said, is to ensure a stable and sufficient fuel supply while managing local price movements in a way that minimizes economic disruption.

Oil companies are required to maintain a minimum 30-day inventory of crude oil and a 15-day supply of finished petroleum products.

The DOE is also working with other agencies to activate fuel subsidy programs.

Under the 2025 national budget, P2.5 billion has been earmarked by the Department of Transportation for public utility vehicle drivers, including taxis, ride-hailing, and delivery service workers. The Department of Agriculture allocates another P585 million for farmers and fisherfolk.

The subsidies are triggered when the price of Dubai crude surpasses $80 per barrel. As of 16 June, the benchmark stood at $73.

“These efforts are part of a broader whole-of-government approach to maintain price stability, safeguard energy security, and protect the Filipino people from external shocks in the global oil supply chain,” Garin said.

To reduce long-term reliance on imported oil, the DOE said it is also fast-tracking programs to promote energy efficiency and shift public transport systems toward electric and hybrid alternatives.