The Davao City Chamber of Commerce and Industry, Inc. (DCCCII) on Monday, April 6, 2026, warned that surging fuel prices are straining businesses and households, as global oil disruptions ripple through the local economy.
In a statement, the chamber said volatile fuel costs have pushed up operating expenses in recent weeks. A survey of its members showed nearly one-third of businesses already feel a high impact, with costs rising by more than 20 percent and up to 40 percent for some firms.
“While the government has taken measures to ease the impact, alarmingly, the prevailing outlook among respondents points to continued price increases on the ground despite government restrictions, prolonged volatility, and a potentially severe economic slowdown if immediate interventions are not undertaken,” the chamber said.
Prices hit record levels
Recent data underscored the spike in Davao City. By the third week of March 2026, pump prices reached about ₱91.69 per liter for gasoline, ₱114.90 for diesel, and ₱143.79 for kerosene after one of the steepest weekly hikes in recent years.
Oil companies rolled out staggered increases ranging from ₱12.90 to ₱16.60 per liter for gasoline and up to ₱23.90 for diesel, adding pressure on transport operators and households.
Earlier in March, fuel prices in parts of the city ranged from ₱54 to ₱56 per liter, showing how quickly costs climbed within weeks. Additional nationwide hikes followed in late March, including ₱6.47 per liter for gasoline and ₱11.88 for diesel, signaling sustained upward pressure.
Global tensions drive local impact
The price surge stems largely from global supply disruptions linked to tensions in the Middle East, particularly along key oil routes such as the Strait of Hormuz.
The Philippines, which relies heavily on imported oil, remains vulnerable to global price swings. Authorities reported declining fuel reserves and rising global costs, prompting the declaration of a national energy emergency in late March 2026.
The situation has triggered wider economic effects, including transport strikes, slower business activity, and higher electricity rates. In Davao, power costs also rose in March, compounding the burden on consumers and enterprises.
Transport groups have called for subsidies and tax relief, citing shrinking incomes and unsustainable operating costs. Some drivers have cut trips or adjusted schedules to save fuel.
Businesses seek urgent measures
The DCCCII urged the government to roll out immediate relief, including temporary fuel tax adjustments and targeted subsidies for public transport, logistics, agriculture, and micro, small, and medium enterprises.
It also proposed forming a local fuel and energy task force to monitor prices, ensure transparency, and implement rapid-response measures.
For long-term solutions, the chamber called for faster investments in alternative energy and fuel-efficient technologies, improved logistics and traffic systems, and stronger coordination between the government and the private sector.
Volatility likely to continue
Despite occasional slowdowns in global oil price growth, analysts expect volatility to persist due to ongoing geopolitical tensions and supply constraints.
The chamber warned that without decisive action, rising fuel costs could push up prices of goods, weaken competitiveness, and slow economic growth.
DCCCII said it is ready to work with government and industry partners to stabilize costs, protect livelihoods, and sustain economic activity. DEF