MANILA, Philippines — Local oil companies that fail to comply with government-mandated price caps and rollback minimums face severe legal consequences, including heavy fines and imprisonment. Energy Secretary Sharon Garin issued the warning following the declaration of a state of national energy emergency, which grants the government expanded powers to regulate fuel prices despite the existing Oil Deregulation Law.
The move comes as the Philippines navigates extreme price volatility caused by the Middle East conflict, with diesel prices peaking as high as ₱170 per liter in recent weeks.
Under the emergency executive order issued by President Marcos, the Department of Energy (DOE) now has the legal teeth to prescribe price increase limitations and mandate specific rollbacks:
- Penalties for Defiance: Erring retailers and companies can face fines ranging from ₱50,000 to ₱300,000, alongside potential imprisonment of three months to one year.
- Permit Revocation: The DOE is prepared to issue show-cause orders and potentially cancel business permits for persistent non-compliance.
- Current Status: While the DOE noted that firms have been compliant so far, inspectors are actively monitoring stations to ensure the latest “big-time” rollbacks are fully implemented.
A recent ceasefire agreement between the U.S. and Iran has provided a temporary reprieve for motorists. The latest round of price adjustments includes:
- Diesel: A mandated cut of at least ₱24.94 per liter.
- Gasoline: A reduction of ₱3.41 per liter.
- Kerosene: A decrease of ₱2 per liter.
- Supply Buffer: The national fuel supply currently stands at a 52-day buffer, with two more diesel shipments (totaling 650,000 barrels) arriving this week in Subic and Davao.
Despite the massive rollbacks, transport groups like Piston argue that current prices are still nearly double what they were in late 2023. The group has filed a petition with the LTFRB for a ₱10 increase in jeepney fares, citing sustained daily losses:
- The Math of Loss: At current Metro Manila diesel prices (approx. ₱123.40/liter), a driver spends ₱3,700 daily on fuel. With maintenance and “boundary” fees, total operating costs can reach ₱5,600—far exceeding typical daily revenues.
- Economic Impact: Drivers are reportedly losing between ₱1,700 and ₱3,000 per day, leaving them unable to provide for basic household needs despite the recent price cuts.
The administration remains cautious, with President Marcos noting that the Middle East situation remains “fluid” and that further initiatives are being explored to lessen the burden on citizens.