Fuel Prices Climb for 8th Straight Week as Middle East Tensions Rattle Oil Supply

Motorists should brace for another round of fuel price hikes this week as global oil markets react to escalating tensions between the United States and Iran, with pump prices set to rise by nearly ₱2 per liter starting Tuesday, March 3.

Oil companies announced that gasoline prices will increase by ₱1.90 per liter, while diesel and kerosene will go up by ₱1.20 and ₱1.50 per liter, respectively. This marks the eighth consecutive week of increases for gasoline and the 10th straight week for both diesel and kerosene.

The sustained upward trend has been largely driven by mounting fears of supply disruptions in the Middle East, particularly in the Strait of Hormuz, a vital global shipping lane for crude oil. The situation intensified after the collapse of negotiations on Iran’s nuclear program, followed by joint strikes by the United States and Israel on Iranian nuclear and missile facilities on February 28. Iran has since retaliated with airstrikes targeting US and Israeli military bases in the region.

In response to the developments, the Department of Energy convened an emergency meeting with oil firms on March 2 to discuss contingency measures aimed at safeguarding the country’s fuel supply should the Strait remain compromised amid prolonged geopolitical tensions.

Even before this week’s adjustment, fuel prices had already increased by ₱1.20 per liter for diesel and kerosene, and ₱0.60 per liter for gasoline last week alone.

With the latest hike, gasoline prices have risen by a net ₱6.70 per liter since the start of the year, while diesel and kerosene have climbed by ₱9.40 and ₱7.70 per liter, respectively, reflecting the growing impact of global instability on domestic fuel costs.

Further adjustments in the coming weeks will likely hinge on how long tensions persist and whether key oil transit routes remain open.