ALERT: Fuel Prices to Skyrocket by P12.90/L, Peso Dives to Record P60.69 vs Dollar!
Filipinos are bracing for a massive surge in diesel prices, with up to P12.90 per liter expected by March 31, alongside modest gasoline hikes. This alarming increase comes as the Philippine Peso plummets to a new record low of P60.69 against the US Dollar, driven by escalating global market instability and the Middle East conflict. Lawmakers are now pushing for an investigation into the diesel price surge and its severe impact on public transportation and consumers.
The Philippines is facing a severe fuel price crisis in late March 2026, with diesel prices expected to surge by P11 to P12 per liter effective March 31, according to industry sources. This follows multiple consecutive weeks of significant fuel price increases, with diesel having already surpassed P100 per liter earlier in March and potentially reaching P114 per liter in some areas. The price hikes are driven by escalating Middle East tensions, including Iran's threats to retaliate against key Gulf infrastructures, which have disrupted global oil supplies and caused shortages. Concurrently, the Philippine peso has weakened to approximately 60.77 PHP per USD on March 30, 2026, representing the highest USD/PHP exchange rate in the last six months and indicating significant peso depreciation.
The Department of Energy (DOE) has been monitoring the situation, with oil companies implementing staggered price hikes instead of one-time big increases to mitigate shock to consumers. President Ferdinand Marcos Jr. has declared a state of national energy emergency and called for immediate fuel excise tax cuts amid record high prices. The government has responded with various measures including P20 billion worth of diesel imports under the Emergency Energy Security Program, fuel subsidies for public transport operators, farmers, and fisherfolk, and free bus rides to ease consumer burden.
While lawmakers have expressed concern about the diesel price surge and its impact on public transportation and consumers, no specific legislative investigation has been reported in available sources as of late March 2026. The DOE has been working with the Department of the Interior and Local Government (DILG) and Philippine National Police (PNP) to monitor for hoarding and profit-taking activities. The situation has created significant economic pressure on households, with LPG prices nearing ₱1,000 per tank and overall fuel costs having doubled since January 2026.
The fuel price crisis is particularly acute because the Philippines imports approximately 95% of its oil, making it highly vulnerable to global market disruptions. The combination of Middle East geopolitical tensions, peso depreciation, low global oil inventories, and high demand has created a perfect storm driving prices to unprecedented levels. The situation continues to evolve, with projections suggesting diesel could reach P130 per liter and gasoline could breach triple digits in the coming weeks if global tensions persist and supply disruptions continue.
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