Energy Secretary Sharon Garin on Monday said oil companies must follow government-prescribed adjustments and avoid excessive increases, even as pump prices are set to drop on 21 April, stressing that rollbacks should not fall below the mandated levels.

Garin explained that price movements must be applied “both ways,” meaning companies are required to match or exceed the government’s computed rollback, while increases must not go beyond what authorities prescribe. “If it’s a rollback, it should be equal to or more than the indicated amount. It can be higher, but it cannot be lower,” she said. “If the DOE says the increase is, for example, 10 pesos, it cannot exceed that.”

She emphasized that the policy ensures fairness and prevents profiteering, noting that the government’s calculations are based on global benchmarks, exchange rates, insurance, and transport costs—not arbitrary figures. “This is not an arbitrary determination. We follow the same factors used in regular price adjustments,” Garin said.

The energy chief added that firms failing to comply may face sanctions, including show-cause orders and possible penalties affecting their permits. Under existing law, violations could also lead to fines and imprisonment.

Garin said the Department of Energy is also requiring oil firms to report unused storage capacity, allowing the Philippine National Oil Company to maximize available depots for fuel reserves. This aims to ensure sufficient buffer supply amid global uncertainties. “If they have available storage that is not being used, they need to report it to the DOE so PNOC can utilize it,” she said.

She noted that the government currently relies on private storage facilities in areas such as Subic, La Union, Batangas, and Davao, as it does not have its own oil depots. “For practical purposes, it is easier because these companies already have logistics systems in place and know how to distribute nationwide,” she added.

Garin said the measures are part of broader efforts to stabilize fuel prices and protect consumers while maintaining industry viability during ongoing volatility in the global oil market.