Fuel retailers are willing to roll out any pump price increases gradually, offering a buffer for consumers amid rising tensions in the Middle East.

In a public interview on Thursday, Energy Secretary Sharon S. Garin said the staggered adjustments are expected next week, with exact increases to be determined on Monday after a five-day simulation.

“They assured us that the stocks they ordered are already on the way here. We have talked about staggering the increases as well as the discounts, and it seems they are amenable.

This is a voluntary thing because there are losses if they do the staggering, and traditionally they have responded positively,” Garin said.

The Energy chief noted that gradual price adjustments are normal and that retailers are generally open to measured increases at the pump.

No hoarding

Despite fears of supply strain, Garin urged the public not to hoard gasoline or diesel, saying panic buying could distort the market and worsen supply conditions.

“Supply is not the issue; it’s a matter of price. Some international traders are holding back, waiting for the best time to sell. Shipping costs and insurance are rising. The supply is there, but it depends on how much you are willing to pay,” she added.

On the proposed excise tax removal, Garin said it could be fast-tracked if needed, noting that Congress could complete the process in three days if parties agree and request urgent certification. 

Based on the projections of the Senate finance panel chaired by Senator Sherwin Gatchalian, the Philippine government could face a revenue shortfall of about P300 billion if excise taxes on fuel are cut for a year. 

Gatchalian noted that a previous threshold for suspending excise taxes had existed but expired in 2020. 

According to Gatchalian, who also sits as Vice Chairman of the Senate Committee on Energy, the government should start tapping the President’s contingency fund to provide immediate fuel subsidies to Public Utility Vehicle (PUV) drivers, citing rising domestic fuel prices even before the recent escalation in the Middle East.

“Let’s not wait for $80 per barrel because the increase is already high,” Gatchalian said, warning that waiting for Dubai crude to reach $80 per barrel could delay relief.

Under the Pantawid Pasada program, subsidies are released only after the DOE certifies that the average monthly price of Dubai crude has reached $80 per barrel.

Meanwhile, Transportation Acting Secretary Giovanni Lopez, the Land Transportation Franchising and Regulatory Board (LTFRB) is ready to release any fuel subsidies to PUV operators and drivers.

Lopez said the agency has already processed the P2.5-billion subsidy so it can be distributed immediately once the price threshold is met, providing relief to drivers amid rising fuel costs.

The LTFRB is also reviewing pending petitions for fare hikes in PUVs.

“Even without the problem now in the Middle East, the LTFRB is already studying the possibility of a fare hike. They have a pending petition regarding that,” Lopez said.