As we filled our tanks early this week to take advantage of the second consecutive fuel price rollback, a sense of optimism emerged-perhaps things are finally returning to normal.
By ‘normal,’ we imagined oil prices at the pump reverting to pre-Iran war levels-before Feb. 28, 2026-when diesel, for example, hovered around P48 to P65 per liter and Brent crude traded at $60 to $70 per barrel.
This week, while the most common price remains below P100 per liter, it soared above P153 (from April 7 to 13), with the average that week ranging from P120 to P160. Notably, prices reached a record high of P170 to P172 in remote rural areas and at premium stations in Metro Manila.
The double-digit rollback this week was not a voluntary act by oil companies-nor did it result from a sudden resurgence of conscience among their owners, assuming they possess any at all.
The price reductions, though significant, remain far from adequate and were mandated by the government. Aware that major oil companies are unmoved by appeals or pleas, the Marcos administration has finally threatened legal action if they fail to comply more than seven weeks into the Middle East crisis that saw these companies greedily raising prices on oil stocks purchased long before the conflict in Iran.
Clear message. On Saturday, President Marcos himself announced fuel price rollbacks of P24.94 per liter for diesel, P3.41 per liter for gasoline, and P2 per liter for kerosene. He asked oil companies to fully implement these rollbacks (see ‘Marcos: ‘Big’ price rollback for diesel at P24.94 per liter,’ 4/19/26).
‘This is bigger than the rollback a week ago, and this sends a clear message for everyone: there is relief coming,’ Mr. Marcos said in Filipino. Directly addressing oil companies, the President said: ‘My request is clear: Fully implement the rollback, do it right, and with no delays. Give the Filipinos what they deserve.’
Since oil prices spiked after Feb. 28, Mr. Marcos has prioritized diesel subsidies for the transport and food delivery sectors, alongside cash aid for tricycle and jeepney drivers, delivery riders, ride-hailing service operators, and motorcycle taxi drivers.
But even if oil companies were to sell oil at prewar prices today, consumers understand that any rollback would barely compensate for the billions in profits amassed since the war in Iran began. With the Philippines maintaining a 50- to 60-day buffer stock, the older, cheaper oil supplies are only now running out. Unless companies offer their new stock at discounted rates-a highly unlikely scenario-the public will continue to be shortchanged.
Ibon Foundation estimated that oil firms raked in a staggering P46.5 billion in windfall profits in March alone-equivalent to P1.5 billion per day. Oil companies defend their price hikes on old stock by citing ‘replacement cost pricing,’ a practice in which pump prices are set based on oil futures that determine the cost of the next batch of oil.
Price caps. So when Energy Secretary Sharon Garin warned oil firms on Monday of hefty fines should they fail to implement the substantial price rollback, it seemed the Department of Energy (DOE) had finally found its voice, mustering the courage to stand up to big oil firms and local traders.
Citing the national energy emergency declared by Mr. Marcos under Executive Order No. 110, Garin stated that the government can now limit fuel price increases or mandate minimum rollbacks at the pump. In short, the DOE is now required to prescribe fuel prices-not just monitor them-to provide relief to the public and help stabilize the economy amid volatile global oil supplies.
This announcement from the DOE is welcome news, as it promises to end the oil firms’ and traders’ unchecked control over pump prices since the passage of the oil deregulation law.
However, Garin should have moved to control or limit price adjustments at the outset of this crisis, rather than waiting seven weeks to act.
There’s more than meets the eye in the energy secretary’s latest statement that could potentially curb oil firms’ windfall profits. Previously, she cited replacement-cost pricing and other landed costs to justify the surge in oil prices, and at the April 8 House committee on ways and means hearing, she denied that pump prices were overpriced.
Now, however, she strikes a different tone: ‘So that’s our new rule now. That’s because of the issuance of the executive order, which triggered the additional powers of government to prescribe the price during these times of emergency,’ Garin said at Monday’s press conference.
Yet EO 110 was issued nearly a month ago (March 24). She had also claimed the government could not impose limits due to the oil deregulation law (see ‘DOE: Hefty fine awaits oil firms defying price orders,’ 4/21/26).
The question on everyone’s mind remains: Why only now, and what really changed?