Brix Lelis - The Philippine Star
October 24, 2026 | 12:00am
MANILA, Philippines — Motorists should brace for another increase in diesel prices next week as escalating hostilities in the Middle East threaten to further disrupt global oil supplies.
Based on the first four days of trading in the Mean of Platts Singapore, the regional benchmark for refined petroleum products in the Asia-Pacific, diesel prices are projected to rise by P2 to P2.50 per liter.
Gasoline prices, meanwhile, could drop by P1 to P1.50 per liter.
The projected adjustments remain preliminary as they do not yet account for week-on-week changes in freight costs.
Jetti Petroleum president Leo Bellas said oil prices rallied amid mounting supply concerns following intensified Houthi attacks on Saudi infrastructure and vessels.
“Loadings outside of the Arab Gulf are now threatened as well, jeopardizing Gulf crude loadings and ship-to-ship transfers that helped support regional loadings,” Bellas said.
Market anxiety has also been fueled by fears of further escalation in geopolitical tensions following the US midterm elections.
For refined petroleum products, diesel prices have come under additional upward pressure from declining oil flows and intensified Ukrainian attacks on Russian refineries.
“Meanwhile, rising gasoline inventories in Singapore pointed to an improving product availability in Asia,” Bellas said.
He added that persistent tightness in diesel supplies has encouraged refiners to maintain crude processing rates, potentially helping sustain gasoline supply even as demand weakens.
The Department of Energy is expected to announce the prescribed pump price adjustments on Monday.
Strategic oil reserves
Amid continuing oil price volatility, lawmakers are pushing for the creation of a Philippine Strategic Petroleum Reserve System to help shield consumers and businesses from supply disruptions and sharp price increases.
Camarines Sur Reps. Migz Villafuerte and Luigi Villafuerte urged yesterday their colleagues in the House of Representatives to support House Bill 9367, which seeks to establish the reserve system.
The measure was also authored by Rep. Tsuyoshi Anthony Horibata and Bicol Saro party-list Rep. Terry Ridon.
The lawmakers explained that the country’s dependence on imported petroleum products leaves it vulnerable to global market fluctuations, underscoring the need for government-controlled fuel reserves.
“Despite its heavy reliance on imported petroleum products, our country lacks a comprehensive legal framework establishing a government-controlled strategic petroleum reserve that will protect Filipinos and businesses from wild swings in the prices of diesel, gasoline and other petroleum products,” Luigi said.
Migz, meanwhile, noted that countries with established strategic petroleum reserves could draw on their stocks during supply disruptions and periods of severe price volatility.
“The Philippines has no comparable government-controlled strategic petroleum reserve to draw from during a major supply disruption and thus remains largely exposed to market volatility, relying instead on commercial inventories and external supply conditions,” he said.
The proposed framework would cover the acquisition, storage, maintenance, rotation and emergency release of petroleum reserves. It would also allow the Department of Energy to work with private entities through public-private partnerships to develop and operate reserve facilities.
The push for legislation comes as Maharlika Investment Corp. and the Philippine National Oil Co. have signed a memorandum of understanding to evaluate the development, financing and operation of a strategic tank farm in Bataan.
The PNOC is targeting the facility’s operations to begin by 2028, with an initial capacity of one million barrels that could eventually expand to 15 million barrels.
Illegal fuel
Meanwhile, Metro Manila police have intensified operations against illegal fuel trading amid concerns that unscrupulous sellers could exploit supply uncertainties.
Metro Manila police officer-in-charge Brig. Gen. Christopher Abrahano ordered police intelligence units and station commanders to strengthen monitoring and validation of unauthorized fuel trading.
The directive followed the arrest of four individuals by Quezon City police on Tuesday for allegedly selling 172 liters of petroleum products illegally beside a gasoline station in Payatas.
“While the government is working to ensure a sufficient and stable fuel supply for our country, we will not allow illegal traders to take advantage of the situation for their own gain,” Abrahano said. – Delon Porcalla, EJ Macababbad