Philippine Fuel Prices Surge as Peso Hits Record Low; Gasoline Up P2.21, Diesel Up P2.66

Key facts

• Gasoline price hike of P2.21 per liter, diesel up P2.66 per liter effective May 5, 2026.
• Kerosene price rolled back by P3.53 per liter.
• Philippine peso hit record intraday low of P61.75:$1 on April 30, 2026.
• average fuel inventory of 53.71 days: gasoline 52.64 days, diesel 54.58 days.
• Oil companies agreed to staggered hikes totaling P17 to P24 per liter this week.
• Energy Secretary Sharon Garin cited peso depreciation as key driver of price hikes.

Another Tuesday, Another Hike: P2.21 for Gasoline, P2.66 for Diesel

Filipino motorists face a second consecutive weekly increase in fuel prices, with gasoline rising by P2.21 per liter and diesel by P2.66 per liter starting at 6 a.m. on Tuesday, May 5, 2026. The adjustments, announced Monday by Petron Corp., Seaoil Philippines Corp., Shell Pilipinas Corp., Cleanfuel, and Unioil Petroleum Philippines Inc., mark the end of a three-week rollback for diesel and extend the upward trend for gasoline. Kerosene users will see some relief, with a price rollback of P3.53 per liter. Cleanfuel and Unioil, which do not carry kerosene, will implement only the gasoline and diesel increases.

Peso Plunges to Record Low, Driving Up Import Costs

Energy Secretary Sharon Garin attributed the latest price hikes primarily to the depreciation of the Philippine peso, which hit a record intraday low of P61.75 against the US dollar on Thursday, April 30, and closed at an all-time low of P61.567 on Wednesday, April 29. Since the Philippines imports all of its crude oil and refined products, a weaker peso directly inflates the cost of every liter at the pump. The peso's slide compounds the effect of volatile global oil prices, which remain under pressure from ongoing tensions in the Middle East. The Mean of Platts Singapore benchmark, which Southeast Asian fuel prices track, has shown sharp swings in recent days.

Staggered Hikes to Spread Pain Over Several Days

The Department of Energy confirmed that oil companies have agreed to stagger the increases over several days rather than imposing a single large hike. Total adjustments for the week are expected to range from P17 to P24 per liter, depending on the product and station. The staggered approach aims to soften the immediate blow to consumers, though the cumulative effect will still be substantial. Last week, firms raised gasoline by P0.53 per liter while rolling back diesel by P12.94 and kerosene by P15.71. The sharp reversal for diesel and kerosene underscores the volatility in global refining margins and the lag between contract prices and retail adjustments.

Supply Chain Amplifies Pain: No Domestic Production, Weak Peso

The Philippines has no domestic oil production, making it entirely dependent on imports priced in dollars and shipped across international waters. Each liter passes through a multi-stage supply chain — from tankers to ports, to regional depots, to inter-island ferries, to trucks — before reaching local stations. Every leg consumes fuel and passes on the cost. This structural vulnerability means that a P2.00 per liter increase at the pump can ripple through the economy, raising delivery fees, pushing up the price of goods, and forcing tricycle drivers to charge higher fares. The Philippine Statistics Authority consistently identifies fuel as a top driver of headline inflation, particularly in transport and food.

DOE Inventory Data Shows Adequate Stocks, But No Buffer Against Price Swings

Data released by the DOE on Monday shows the country has an average fuel inventory sufficient for 53.71 days: gasoline good for 52.64 days, diesel for 54.58 days, kerosene for 166.67 days, jet fuel for 71.14 days, fuel oil for 62.69 days, and liquefied petroleum gas for 40.46 days. While these levels are adequate to meet demand, they do not insulate consumers from global price movements because the cost of replacement stock is determined by current international prices. The timing gap between contract purchases and retail pricing means that today's pump prices reflect deals made weeks earlier. When global prices fall, rollbacks arrive slowly and in smaller increments — a P0.50 reduction after a P2.50 hike is typical, not a sign of manipulation.

Outlook: More Hikes Expected as Peso Weakens and Geopolitical Risks Persist

Energy officials warn that global oil prices remain unstable due to ongoing tensions in the Middle East, with concerns over potential conflict and trade disruptions continuing to affect supply and pricing. The DOE is monitoring international trading and currency movements closely, and fuel companies are expected to release official announcements each Monday before adjustments take effect the following day. For public utility drivers, delivery riders, and workers who rely heavily on transportation, each hike adds pressure to daily expenses. The government has rolled out P75 million in fuel assistance for fisherfolk, but broader relief measures remain limited. With the peso under pressure and no end in sight to global volatility, Filipino motorists may need to brace for further increases in the weeks ahead.

The bottom line

• Gasoline up P2.21/L, diesel up P2.66/L effective May 5; kerosene down P3.53/L.
• Peso hit record low of P61.75:$1, directly raising import costs for all fuel.
• Oil companies stagger hikes totaling P17-P24/L this week to spread impact.
• Philippines imports 100% of fuel, making it highly vulnerable to currency and global price swings.
• DOE inventory stands at 53.71 days average, adequate but no buffer against price volatility.
• Geopolitical tensions in the Middle East and weak peso suggest more price increases ahead.