Philippines fuel prices up P1.96 per liter amid Middle East disruptions

The Department of Energy (DOE) announced on Tuesday, May 26, maximum pump price increases of P1.96 per liter for diesel, P1.60 for gasoline, and P1.45 for kerosene, as ongoing fuel supply disruptions stemming from the Middle East situation continue to elevate prices across the Philippines. Local motorists faced increases of at least P1 per liter on the day of the announcement. The price hikes reflect tightening global inventories, a widening supply deficit, and continued risks surrounding the Strait of Hormuz linked to Middle East tensions.

The DOE expects crude market prices to remain elevated as geopolitical developments persist as a key swing factor in global energy markets. According to the energy department, "the market hopeful that high-level discussions between major powers could help ease Iran-related tensions and provide clearer signals on energy flows through the Strait of Hormuz."

Price Adjustments

The DOE's announcement on May 26 represents a significant increase from the previous week's adjustments. In the prior week, gasoline prices rose by P1.20 to P1.21 per liter, while diesel prices increased by around P2.80 to P2.82 per liter. Kerosene prices declined by approximately P2.11 per liter during that period.

International Market Conditions

According to the DOE's oil monitor as of May 19, Dubai crude prices rose by approximately $3 per barrel. International prices for gasoline and diesel increased by around $3 and $5 per barrel, respectively, while kerosene prices dropped by approximately $2.50 per barrel.

DOE Market Assessment

The energy department noted that gasoline and diesel markets firmed as the United States tightened inventories amid US President Donald Trump's rejection of Iran's counterproposal for a peace agreement. The DOE identified geopolitical developments as a key swing factor in energy markets, with particular attention to the situation in the Middle East and its impact on energy flows.