The Department of Energy (DOE) on Wednesday said diesel prices in the Philippines could potentially reach as high as P200 per liter if tensions in the Middle East continue to escalate.
According to Sharon Garin, the country remains vulnerable to global oil price fluctuations, particularly those driven by ongoing conflict involving the United States, Israel, and Iran.
“Will it go up to P200 [per liter] honestly I don’t know…Unfortunately we are so dependent on what’s happening there,” Garin said during a hearing on the oil price shock at the House Committee on Ways and Means.
“It could happen depending on what the two countries do,” she continued.
She added that such a scenario remains possible depending on how the situation in the Middle East develops.
Garin explained that while only about 20% of global oil supply comes from the Middle East, disruptions in the region still have a significant impact on global prices.
She noted that even if the conflict were to end immediately, supply recovery would not be instantaneous, given the damage to oil infrastructure, uncertainty, and other factors.
“If the war stops today, will the 20% be able to deliver? I think it will take months because most of the infrastructure, especially LNG, has been destroyed,” she said.
Because of this, the DOE expects elevated oil prices to persist beyond the duration of the conflict itself and that a return to prices below P100 per liter would take time.
“The problem will stay longer than the war itself,” Garin said.
“If it ever goes back to P100 or below, it will take some time,” she added.
During the same hearing, FPJ Panday Bayanihan Party-list Rep. Brian Poe raised concerns about the possibility of power shortages or rolling brownouts if fuel prices continue to rise.
Garin assured lawmakers that the electricity supply remains stable, emphasizing that only about 3% of the Philippines’ power generation depends on fuel.
She emphasized that there are no expected brownouts because of the crisis.
Earlier, the DOE reported the country currently has enough fuel supply to last approximately 50.42 days.
Garin said this buffer gives the government and oil companies sufficient time to secure additional supply if needed.
