Jonathan Frederic De Santos

Members of the transport group PISTON hold a protest at a gasoline station in Quezon City on October 15, 2024, against the latest round of fuel price hikes imposed by oil companies. The price increases include P2.65 per liter for gasoline, P2.60 for kerosene, and P2.70 for diesel. The group aims to highlight the growing burden of rising fuel costs on public transport workers and calls for government intervention and stricter regulations on oil price adjustments. Maria Tan, ABS-CBN News

Article (news)

Francis Orcio

ABS-CBN News

<p>MANILA <strong>(UPDATED)</strong>— Senators on Thursday scored oil industry players for selling fuel products at higher prices even if these were sourced before the war in the Middle East, and the Department of Energy for letting it happen.</p><p>Sen. Rodante Marcoleta noted there was a 60-day supply before the US and Israel attacked Iran in late February, causing a regional conflict that has sent oil prices soaring.</p><p>&quot;After two weeks, imbentaryo pa yung binibenta nila. How come biglang nagtaas ng ganun?&quot; he said.</p><p>Oil firms have said the higher prices take replacement cost into account.</p><div><a href="https://www.abs-cbn.com/news/business/2026/3/18/why-can-oil-firms-hike-prices-for-fuel-bought-weeks-ago-1839">Why can oil firms hike prices for fuel bought weeks ago?<br/></a></div><p>&quot;Can we justify that? Starting from the DOE, anong gagawin nyo? The oil companies will use the replacement cost kahit hindi naman kailangan because the inventory was still there,&quot; he said, adding the industry earns around P3 billion a day from the higher prices.</p><div><a href="https://www.abs-cbn.com/news/nation/2026/3/17/students-hold-protests-at-gas-stations-as-oil-price-hikes-1803">Students hold protests at gas stations as oil price hikes</a></div><p>&quot;Did you ask them to present, for example, documents to validate na kailangan P110 na per liter? Kinuha niyo ba iyong mga dokumento sa kanila na bumili na ba on the replacement cost ang basis?&quot; he also said.</p><p>The Philippines deregulated the oil industry in the late 1990s, counting on competition and market forces to keep prices stable.</p><p>The DOE monitors price movements and watches out for potential hoarding and &quot;overpricing&quot;.</p><div><br/></div><div><strong>&#x27;DISCONNECT&#x27; WITH TRANSPORT SECTOR</strong></div><p>Sen. Sherwin Gatchalian, chair of the Senate  Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee holding the hearing, said there seems to be a a disconnect between the deregulated fuel market and the heavily regulated transport sector.</p><p>“I don&#x27;t buy the replacement cost argument. Dahil, at the end of the spectrum, iyong pinakadulo nito, iyong mga drivers natin, hindi naman sila nagre-replacement cost e’. Hindi nga tumataas iyong kanilang pasahe,” Gatchalian said.</p><p>He said he is not accusing the firms of profiteering but said it Is unfair to public utility vehicle drivers that “we allow the oil companies, the retailers, to price their oil on a replacement cost basis&quot; while fare increases are subject to government approval.</p><div><br/></div><div><strong>LEGARDA: DON&#x27;T USE CONGRESS AS A SCAPEGOAT</strong></div><p>Even Sen. Loren Legarda found the oil industry practice and its justification unacceptable.  </p><p>&quot;Kahit dumating na dito ang presyo ay hindi price ng date of delivery pero yung practice daw kinocompute yung historical average at ina-assume na yung cost sa pagbili ng bagong stock.&quot;</p><p>Energy Undersecretary Felix William Fuentebella conceded there is a need to tweak existing policies under the &quot;very extraordinary circumstances&quot; caused by the war in the Middle East, an oil-rich region also called West Asia.</p><p>&quot;We have an oil deregulation law, yet the public utility vehicles, they are regulated. That&#x27;s where that disconnect is,&quot; he also said.</p><p>Legarda said the executive branch has enough leeway to adjust policies, adding &quot;there&#x27;s no need to [pass] a new law which will take months if not years [to debate].&quot;</p><p>She added: &quot;Huwag po niyong gagawing dahilan ang Kongreso.&quot;</p><div><a href="https://www.abs-cbn.com/news/business/2026/3/25/marcos-jr-cuts-oil-excise-tax-to-ease-double-digit-spikes-in-ph-fuel-prices-1901">Marcos Jr. cuts oil excise tax to ease double-digit spikes in PH fuel prices</a></div><div><br/></div><div><strong>&#x27;PRICING IS COMPETITIVE&#x27;</strong></div><p>Petron General Manager Lubin Nepomuceno said companies are only following the market.</p><p>&quot;Whatever is the pricing in the market, we have to compete because our dealers will not be able to sell if their prices are above the prices of competition.&quot;</p><p>Chevron Philippines Inc. (Caltex) president Pongtorn Tangmanuswong meanwhile said the practice is necessary to ensure supply.</p><p>Using gold as an example, he said that selling at an acquisition price of $100 while prices are at $150 would mean &quot;everyone will come and buy from me...so the supply or the inventory will be short.&quot;</p><p>He added: &quot;If I sell at $100, which is the acquisition cost of last week, will I have the cash flow to buy the inventory in order to continue the business? I may not.&quot;</p><p>DOE Oil Industry Management Bureau Director Rino Abad said the system is anchored on ensuring that depleted fuel volumes can be immediately replaced.</p><p>“If the perspective is to ensure that the seven days used up this week will be replaced by next week immediately, then the oil company has to collect that level of collection to be able to purchase the seven days replacement,” Abad said.</p><p>&quot;If the perspective is you want to use up the 53 days before you replace it, and that is very dangerous,&quot; he said. <strong>— RG Cruz, ABS-CBN News</strong></p>

<p>Energy Undersecretary Felix William Fuentebella conceded there is a need to tweak existing policies under the "very extraordinary circumstances" caused by the war in the Middle East, an oil-rich region also called West Asia.</p>

Energy Undersecretary Felix William Fuentebella conceded there is a need to tweak existing policies under the "very extraordinary circumstances" caused by the war in the Middle East, an oil-rich region also called West Asia.

Senators score oil firms for selling pre-war fuel at premium prices

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Senators score oil firms for selling pre-war fuel at premium prices

Francis Orcio,

ABS-CBN News

Published March 26, 2026 07:21 PM PHT

|

Updated March 26, 2026 07:43 PM PHT

Read More:

Senate

Rodante Marcoleta

Loren Legarda

Oil Price Hike

Petron

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