Rising Fuel Prices Disrupt Visayas Ferry Operations; VP Sara Duterte Urges Gov't Action

Rising Fuel Prices Disrupt Visayas Ferry Operations; VP Sara Duterte Urges Gov't Action

#Energy#InflationPH#PhilippineEconomy#Philippines#SaraDuterte#Transportasyon#Visayas

Rising fuel prices, linked to Middle East tensions, are beginning to disrupt ferry operations in the Visayas, leading to fare increases and trip cancellations. FastCat has already implemented an updated fare matrix due to a 40 percent surge in global fuel costs. In response to the projected oil price increase and its widespread impact, Vice President Sara Duterte urged concerned government agencies to monitor the situation and implement measures to alleviate the burden on Filipinos.

Rising fuel prices driven by Middle East tensions have caused significant disruptions to ferry operations across the Visayas region in early March 2026. OceanJet suspended multiple ferry routes starting March 6, 2026, including services between Cebu and Palompon, Getafe and Cebu, and Palompon and Cebu. The disruptions stem from escalating global oil prices linked to conflicts involving Iran, Israel, and the United States, which have threatened shipping routes in the Strait of Hormuz. Global crude oil briefly surpassed $82 per barrel, the highest level since January 2025, creating operational challenges for ferry operators.

The Philippines is particularly vulnerable to these price fluctuations because approximately 98 percent of the country's crude oil originates from the Middle East. Locally, fuel price adjustments announced on March 3 increased gasoline by ₱1.90 per liter, diesel by ₱1.20, and kerosene by ₱1.50. Since January 2026, gasoline has risen ₱6.70 per liter total, diesel ₱9.40, and kerosene ₱7.70, putting significant pressure on transport operators who consider fuel their largest operating expense.

While the Department of Energy reports that the Philippines maintains a 60-day fuel inventory—triple the minimum requirement—authorities warn that prolonged global price increases could trigger widespread economic ripples, including higher transportation fares, elevated electricity costs, and increased prices for essential goods. The Land Transportation Franchising and Regulatory Board has urged eligible transport operators to prepare with Fuel Subsidy Program cards as part of a financial assistance initiative.

Vice President Sara Duterte made a related statement on March 3, 2026, urging Filipinos to reconsider organizing motorcades and vehicle caravans amid rising fuel prices, though this statement did not specifically address ferry operations. Her appeal centered on reducing fuel consumption, air pollution, and traffic congestion, with a call for local government units to permanently ban such activities. Meanwhile, other ferry operators like Montenegro Shipping Lines plan nationwide fare hikes of 10-25% starting March 23, 2026, indicating broader industry impacts from the fuel crisis.

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