The continuation of stalled US-Iran diplomacy and restricted Strait of Hormuz traffic over the past week has translated into another round of fuel price hikes for the last week of August.
For the period of August 25 to 31, 2026, the price of diesel will go up by P2.31 per liter, while gasoline prices will increase by P1.08 per liter. Finally, kerosene will also have a price increase of P0.95 per liter.
Analysts and observers are now concerned that the continued disruption of Hormuz traffic has begun depriving refineries in Asia with the specific grade of crude oil needed to distill fuel products, particularly diesel and jet fuel. This is expected to trickle down to consumers in the coming weeks through successive price hikes, assuming the shortage persists.
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The Philippines is projected to be one of the most vulnerable nations to tightening refined fuel supply in Asia due to its limited power to keep up with an increasingly aggressive energy market. At its weekly press conference, the Department of Energy shared that the country currently holds an average of 47.22 days’ worth of supply across all fuel products. Gas and diesel have 44.39 and 47.66 days’ worth of supply, respectively.
The fuel subsidy program for jeepney and UV Express drivers has also been confirmed to continue into September. The program is subject to a monthly review to evaluate its necessity and allocate its funding. The DOE shares that as of August 24, the government has disbursed over P536.5 million in subsidies to 97,910 participating drivers. This means that since its introduction in April, an average of P52 million has been allocated to the program’s subsidies every week.
