Oil profiteers warned of legal 'consequences’: Philippines

Manila: The Philippine warned fuel retailers and fuel hoarders against exploiting the Middle East conflict, saying the government will pursue legal action against companies that engage in profiteering.

As local consumers the feel the pinch, some fuel retailers are already rationing fuel amid the price spike triggered by the tanker squeeze in the Strait of Hormuz.

“If you take advantage of the situation, there will be consequences. You may face charges and could even lose the opportunity to continue doing business,” Palace press officer Claire Castro said.

Philippine President Ferdinand Marcos Jr is currently in New York City on a two-day working visit to attend meetings and deliver an address at the United Nations General Assembly.

The warning came as Philippine fuel prices posted their largest weekly adjustment on record, with increases reaching as much as P38.50 per liter.

Diesel prices rose by ₱17.50 to ₱24.25 per litre, with many oil companies splitting the increases into two to seven tranches to soften the immediate impact on consumers.

Gasoline prices climbed ₱7 to ₱13 per liter starting Tuesday.

Energy Secretary Sharon Garin said several fuel companies had agreed to stagger the increases, including Shell Pilipinas, Petron, TotalEnergies, Chevron, Jetti Petroleum and Seaoil.

At the same time, the Department of Energy issued show-cause orders against 54 gasoline stations, including 26 in Metro Manila, for allegedly raising prices ahead of the March 10 schedule authorized by the government.

Garin described some increases of 40 to 50 percent as “very exorbitant and very obvious profiteering,” but stressed that the government would still follow due process under the law.

Stations found violating pricing rules could face suspension or cancellation of their permits to operate.

The energy department is also coordinating with other agencies to monitor compliance. The Philippine National Police has deployed officers nationwide to patrol gasoline stations and assist in investigations.

PNP spokesperson Randulf Tuaño said the police are helping gather evidence, support inspections, and file cases against violators.

PNP chief Jose Melencio Nartatez Jr. earlier warned that gasoline station operators could face arrest if they raise prices ahead of schedule or withhold supply.

“Our intelligence units are monitoring warehouses for possible hoarding and other similar illegal activities,” he said.

Amid the surge in global oil prices, Marcos has formally asked Congress to grant him emergency powers to reduce taxes on petroleum products.

The President had earlier said he would consider cutting fuel taxes if Dubai crude reaches or exceeds $80 per barrel.

Prices have already blown past that level. Dubai crude surged to about $99 per barrel on Monday, sharply higher than the $68 level recorded before the Middle East conflict erupted on Feb. 28.

The spike has been driven partly by Iran’s closure of the Strait of Hormuz, a critical shipping route for Gulf oil exports.

The disruption has tightened global supply and threatens to push up the prices of food, transport fares and other essential goods.

Under Tax Reform for Acceleration and Inclusion Act (Republic Act No. 10963), fuel excise taxes are automatically suspended if the average Dubai crude price reaches $80 per barrel for three consecutive months. However, that provision expired in 2020, prompting the administration to seek new emergency authority from Congress.

In the Senate, Risa Hontiveros called for an emergency supplemental budget of ₱52.8 billion to cushion the impact of rising oil prices.

The proposal includes:

At least ₱38 billion to establish an emergency fund for overseas Filipino workers covering repatriation and reintegration programs.

Meanwhile, the Department of Economy, Planning and Development is studying potential economic scenarios if the conflict continues.

Undersecretary Rosemarie Edillon told lawmakers that two possible outcomes are being modeled. One assumes oil prices hovering around $100 per barrel if the war ends soon.

The second, more severe scenario assumes a prolonged closure of the Strait of Hormuz, which could drive crude prices up to $140 per barrel.

If that happens, diesel prices in the Philippines could climb to around ₱96 per litre, even before any tax relief measures are implemented.