Philippine E-Journals

Fueling A Crisis: Rising Fuel Prices And The Public Transport Emergency In The Philippines

Jana Quisha Salamatin

Discipline: others in business and management

 

Abstract:

The Philippines is facing one of its most severe fuel price crises in history. It experiences high risk of international oil price fluctuations because of its heavy reliance on imported petroleum resources. This national problem is connected to disruptions in the Strait of Hormuz which carries approximately 20% of global oil shipments and the geopolitical tension in the Middle East. The Department of Energy (DOE) reported the price increases of PHP 36.30 per liter for gasoline, PHP 57.55 for diesel, and PHP 55.10 for kerosene from January 1 to March 20, 2026 (Flores, 2026). A consistent pattern can be seen in the Philippines’ history of fuel crises. It shows that while past crises gave short-term responses such as subsidies and fare adjustments, the country has consistently failed to implement structural reforms. The public transport sector has absorbed the most immediate impact of the fuel price increase. An average 19% fare increase across public utility vehicle modes was approved on March 17 by the Land Transportation Franchising and Regulatory Board (LTFRB). Despite this adjustment to fare, many drivers report net daily earnings of only PHP 200 to PHP 300 (Sampang, 2026). The current crisis reflects the long-standing gaps in energy security such as the absence of a strategic petroleum reserve, heavy dependence on a single import region, weak price governance under the deregulated oil market, and slow progress in transport electrification. This policy brief recommends the immediate enactment of Senate Bill No. 1982 with targeted relief for affected sectors. It requires presidential approval to become law which will result in a price decrease of PHP 6 to PHP 10 per liter at gas stations. It also proposes four structural reforms which include amending the Oil Deregulation Law to enable crisis response measures, establishing a national strategic petroleum reserve, diversifying oil import sources through bilateral and ASEAN agreements, and accelerating the shift to electric and hybrid public utility vehicles. These will help stabilize current conditions and strengthen long-term resilience against futur