E-Paper
Sign In
Philippines fuel prices rise for fourth straight week amid continuing Middle East tensions
The latest pump price hikes are again substantial, prompting renewed calls from public transport workers for fare increases nationwide. “This feels like the beginning of March again,” they said
- PUBLISHED: Tue 21 Jul 2026, 6:05 AM UPDATED: Tue 21 Jul 2026, 7:21 AM
[Editor's Note: For the latest updates on how US-Iran hostilities have escalated since a 14-point deal was signed on June 12, follow the Khaleej Times live blog.]
Passenger van driver Joseph Calanoga began his daily route at 4am, an hour earlier than usual. "I needed the extra fare so I could fill up before diesel prices increased again today," he told Khaleej Times before setting off while it was still dark.
Recommended For You
The Philippines woke to fuel price increases for the fourth consecutive week on Tuesday, July 21, as tensions in the Middle East continued to drive up global oil prices. The latest pump price hikes are again substantial, prompting renewed calls from transport workers for fare increases nationwide.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“This feels like the beginning of March again,” Joseph told Khaleej Times, recalling oil price shocks when tensions in the Middle East first erupted.
Double-digit increases
Diesel prices increased by as much as P11 (Dh0.65) per litre on Tuesday in the Philippines, the biggest hike since shooting resumed in the Gulf region. Kerosene registered a higher price increase by as much as P12 (Dh0.71) per litre while gasoline is more expensive by P4 (Dh0.24) per liter.
On average, diesel currently retails at P78.59 (Dh4.69) per liter, while gasoline is at P80.59 (Dh4.80) per liter.
Department of Energy secretary Sharon Garin pointed squarely at renewed tensions in the Middle East for the month-long price uptick, assuring, however, that the Philippines currently has a 49-day buffer should supply routes become even more constricted by the expanding war.
Houti belligerents have warned of “active engagements” against ships passing through the Red Sea, including those that are connected with Saudi Arabia.
The Philippines sources 80 per cent of its fuel supplies from the region.
Fare hike petitions
Public transport federations meanwhile have revived petitions for increases in fares.
Liberty de Luna, president of the Alliance of Concerned Transport Organizations (ACTO), said it is time for Philippine President Ferdinand Marcos Jr. to approve a P1.00 increase in base fares.
De Luna recalled that while their petition had been initially approved by the transportation regulatory board last March, Marcos ignored the petition, choosing instead to give cash assistance packages and fuel discounts in select gasoline stations in major cities.
ACTO said their fare hike petition had actually been filed even before the US-Israel-Iran conflict started in late February, noting that their original petition was at P3.00 fare increase for the first four kilometers of the commute.
A commuters’ group however cautioned against fare increases, suggesting a public consultation should first be held. Passenger Forum advocacy officer Mike Quinto said that fare hikes should be a last option while the Marcos government should roll out other forms of intervention.
Government windfall
In response to mounting calls for the suspension of taxes on oil products while Middle East tensions rage, Marcos Jr. temporarily suspended excise taxes on cooking gas and kerosene. Despite special powers given by Congress, however, the Philippine president refused to suspend value added and excise taxes on diesel and gasoline.
Marcos argued that halting transport fuel taxes would not provide meaningful relief for consumers, but would instead cost the government up to P43.6 billion (Dh 2.59 billion) in lost revenues.
Higher fuel costs have benefitted the government more than it projected, however. Overall fuel import revenues reached P83.41 billion (Dh 4.96 billion) by mid-April alone.
In return, the Marcos government has allotted PHP 15.375 billion (Dh 916.4 million) in direct cash assistance to low-income families and displaced overseas workers to cushion the impacts of the renewed Middle East crisis and subsequent global oil shocks.
Joseph said that not all those affected by the oil price shocks are given cash aids by the government. “As a public vehicle driver, I care about how much diesel costs. That directly relates whether I could still earn doing this job,” he said.