How diesel overtook gasoline in prices
A significant shift in the Philippine fuel market sees diesel, traditionally cheaper, now surpassing gasoline in price. This change, largely attributed to rising oil prices following the Middle East conflict since February 28, 2026, is causing concern among jeepney drivers and transport operators due to increased operational costs.
In early 2026, diesel prices in the Philippines began consistently rising faster than gasoline prices due to escalating Middle East tensions, particularly US-Iran conflicts affecting global oil markets. From January through February, diesel experienced 10 consecutive weeks of increases compared to 8 weeks for gasoline, with diesel hikes often being larger - for instance, on February 24, diesel rose by P1.20 per liter while gasoline increased by only P0.60 per liter. By late February, cumulative year-to-date increases showed diesel up P7.00 per liter versus gasoline's P4.20 per liter increase.
The situation intensified in March 2026, with diesel prices reaching unprecedented levels. During March 17-23, diesel prices surged by P20.40 to P23.90 per liter, while gasoline increased by P12.90 to P16.60 per liter. This led to premium diesel reaching up to â±94.43 per liter, surpassing premium gasoline prices that reached up to â±86.93 per liter. The Department of Energy reported that by mid-March, diesel prices had reached PHP 82.00 per liter, representing a 45.1% increase in just one month.
Jeepney drivers and transport operators faced severe operational challenges due to these price increases. The Department of Social Welfare and Development (DSWD) responded by distributing â±5,000 to â±10,000 in assistance to tricycle and jeepney drivers in Metro Manila, with a total allocation of â±700 million distributed through local government units starting in March. The government cited the ongoing Middle East conflict, peso depreciation near â±60 to the US dollar, and global market volatility as key factors driving the unprecedented fuel price increases.
Official statements from oil companies including Shell, Cleanfuel, Seaoil, and Petrogazz confirmed the price adjustments, while the Department of Energy maintained surveillance of fuel price variances across different regions. The situation represented a significant shift in the Philippine fuel market, where diesel had traditionally been cheaper than gasoline but now commanded higher prices due to geopolitical tensions and market dynamics affecting global oil supplies.
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