As fuel prices finally begin to ease, the government is moving to ensure the full rollback reaches consumers. The Department of Energy is requiring oil companies to align with higher, government-calculated price cuts rather than lower industry estimates.
Energy Secretary Sharon Garin said firms are expected to comply with these adjustments under the ongoing national energy emergency. The directive comes as authorities move to enforce the announced reductions across retailers.
The government expects price cuts of ₱20.89 per liter for diesel, ₱4.43 for gasoline, and ₱8.50 for kerosene. These figures are higher than projections from oil companies, which rely on Mean of Platts Singapore (MOPS) trading data. Industry estimates point to smaller reductions based on recent trading movements.
The DOE said its computation includes free-on-board prices, freight, insurance, and foreign exchange movements. Oil firms factor in market premiums, taxes, and operating margins when setting pump prices.
Meanwhile, Garin emphasized that the country remains under a national energy emergency, which allows the government to act when needed. The DOE has also required oil companies to submit detailed breakdowns of their pricing through unbundling, following existing legal guidelines.
Failure to comply with the directive may lead to show-cause orders and possible legal sanctions under Executive Order 110. The DOE has also coordinated with regulators to examine possible anti-competitive behavior in fuel pricing.
