PETROLEUM firms are set to implement significant oil price increases this week, staggered into two tranches. Pilipinas Shell, Caltex, Seaoil, Cleanfuel and Petron have announced a total price increase of P3.50 per liter for gasoline, P5.20 per liter for diesel and P4.80 per liter for kerosene.
The first tranche of the price hike will take effect on Tuesday, June 24, 2025, starting at 6 a.m. This will involve a P1.75 per liter increase for gasoline, P2.60 per liter for diesel and P2.40 per liter for kerosene. The second tranche, with the same adjustments, will follow on Thursday, June 26.
The Department of Energy (DOE) confirmed on Monday, June 23, that the staggered implementation was agreed upon during a meeting with officer-in-charge (OIC) Sharon Garin, Undersecretary Alessandro Sales, and representatives from fuel companies. This measure aims to cushion the impact of the price hike on affected sectors.
Deregulated industry
“Hindi na man namin madiktatan kasi wala na kasi sa puder ng DOE at kailangan i-check nila ang kanilang mga financials nila. This is really a request out of the goodness of their hearts. Hindi ito pwedeng ma-impose kasi it is a deregulated industry,” Garin said in an interview.
(We can’t really dictate it because it’s no longer under the jurisdiction of the DOE and they need to check their own financials. This is really a request out of the goodness of their hearts. It can’t be imposed because it is a deregulated industry.)
She added, “So ang proposal sana halimbawa kung may, kung (may P4) man ang increase, dahan-dahan lang sana at hindi biglaan na P4 agad in one day.”
(So the proposal, for example, is that if there’s a P4 increase, hopefully it can be gradual and not a sudden P4 hike in just one day.)
The DOE OIC also urged oil companies to expand the number of their retail stations offering fuel discounts to the transport sector.
Garin said they are scheduled to meet with the Department of Transportation and the Department of Agriculture to discuss rolling out subsidies for public drivers and farmers if the average price of crude oil breaches $80 per barrel. Currently, crude oil stands at $75.16 per barrel.
Earlier estimates from the DOE-Oil Industry Management Bureau had projected gasoline costs to increase by P2.50 to P3 per liter, diesel by P4.30 to P4.80 per liter and kerosene by P4.25 to P4.40 per liter this week.
Local concerns
In Cebu, transport groups have voiced deep concern over the impending fuel price hike, warning of its ripple effect not only on drivers’ livelihoods but also on the cost of basic goods.
Greg Perez, president of the Cebu chapter of the Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide, said in a phone interview on Monday that the rising oil prices will significantly impact both drivers and consumers.
“Dako-dako gyud ang impact sa mga drivers sa ilahang panginabuhi kada adlaw ug sa mga nag-unang palitonon,” Perez said, emphasizing that the domino effect will extend beyond the transport sector.
(The impact on drivers’ daily livelihood and on basic goods is quite significant.)
Perez criticized the continued implementation of the Oil Deregulation Law (Republic Act 8479), which he argues has stripped the government of its power to control pump prices.
“The government no longer has a voice or teeth to stop whatever big oil companies want to do,” he said in Cebuano. He added that the “continued price increases are just like what happened in 2023, and this has a huge impact on the people.”
Perez reiterated their long-standing call to suspend the excise tax and the Oil Deregulation Law on petroleum products, citing these as more effective solutions than subsidies, which are not accessible to all drivers.
“Our call is to remove the excise tax so that all sectors can benefit,” he said. “Fuel subsidy is just a band-aid solution. Not all drivers are able to receive it and most of the time, it even causes conflict between drivers and operators.”
He also urged the government to prioritize developing the country’s own oil resources to lessen dependence on foreign supply.
Excise tax is a government-imposed tax on fuel products, added on top of the base price, and was increased under the Train Law starting in 2018.
The Oil Deregulation Law, passed in 1998, allows oil companies to freely set fuel prices based on global market trends, removing government control or caps on oil prices.
Meanwhile, Ellen Maghanoy, chairperson of the Federation of Cebu Transport Cooperatives, highlighted that the consistent price hikes are deeply felt by operators of modern public utility vehicles who are still paying off loans for their units.
“What are we supposed to do when prices keep going up, and this really consumes a lot of diesel,” she lamented. “It’s painful, ma’am, for the operators and all the stakeholders,” she added.
Maghanoy also pointed to the challenge of unfair competition, specifically mentioning traditional jeepneys that continue to operate illegally. She called on the government to enforce fair competition to level the playing field for compliant operators.
Drivers, commuters’ reaction
“Lito,” a 62-year-old traditional jeepney driver who has been on the road since 2013, expressed the heavy burden that fuel price spikes place on drivers. He noted that passenger numbers are inconsistent, unlike the jeepney’s steady fuel consumption.
“Mabug-atan jud ang driver kay permanente man ang rounds sa sakyanan kun pila ka ka-round ma na ang konsumohon (sa gas sa jeep),” he explained.
(Drivers are really burdened because the vehicle’s rounds are constant and so is the amount of gas consumed by the jeep.)
A taxi driver said that to address passengers’ concerns about the fuel price hike, he informs them that it’s a global effect stemming from the conflict between Israel and Iran.
For students, the situation is just as challenging.
Madeline Ross Profetana, a BSHM student at the University of Cebu, exclaimed, “Ay mo mahal na kaayo ang plete.” (Oh, the fare is getting too expensive!) As someone who has been working part-time since the age of 16, she said that any sudden price hike makes it difficult to afford basic needs. “Lisud na mangita og kwarta ron, (bisag) piso magamit na baya na,” she added. (It’s hard to earn money now; even a peso can be used.)
Pablito Mongas, a security guard, shared the same sentiment, noting that fuel spikes inevitably lead to fare increases. As he commutes daily for work, the rising fuel costs negatively affect his budget.
With no clear signs of fuel prices decreasing, commuters and drivers continue to bear the rising costs, concerned that the situation may worsen in the coming weeks. (TPM of SunStar Philippines/CDF/With Julie Anne Sajetarios, Holy Name University intern and Ruyz Angela Lois Manacap, CNU intern)