Rollback of domestic pump prices may be short-lived

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April 14, 2026 | 12:00am

MANILA, Philippines — Amid an implied threat of legal action, oil companies are complying with the government-calculated rollback this week despite the country’s law barring fuel price regulation.

Starting today, diesel, gasoline and kerosene prices are set to drop by at least P20.89, P4.43 and P8.50 per liter, respectively, according to three oil firms.

Shell announced the largest price cut so far, slashing diesel prices by P23 per liter, gasoline by P6.50 and kerosene by P11.50.

President Marcos announced the estimated pump adjustments over the weekend, with Energy Secretary Sharon Garin noting that all companies were “on board.”

The Department of Energy (DOE) met with oil firms on Sunday with the “threat of a show-cause order” should they fail to comply with government rollback estimates, a source familiar with the matter told The STAR.

“During the meeting, it was actually beyond strongly suggested that the DOE-computed rollback shall be the expected adjustments for April 14,” the source said.

The DOE’s estimates were significantly higher than industry projections of a maximum price cut of only P10.80 per liter for diesel and P1.50 per liter for gasoline.

The government currently has no control over fuel prices due to the Oil Deregulation Law, which fully liberalizes the country’s downstream oil industry.

The source, however, said oil players felt compelled to follow the mandate, adding that no company was willing to challenge the DOE’s actions even if these may have run counter to the law.

While the DOE could not be reached for confirmation yesterday, Garin captioned a shared social media post on the reported threat of legal action to oil firms with a “peace sign.”

This week’s rollback comes after the US agreed to pause attacks on Iran in exchange for the reopening of the Strait of Hormuz, a critical maritime chokepoint that carries about 20 percent of global oil and gas supplies.

However, the downtrend in fuel prices could soon reverse after US President Donald Trump threatened to block “any and all ships trying to enter, or leave, the Strait of Hormuz.”

“A blockade of the Strait of Hormuz would mainly affect global oil prices since it’s a key route for supply. Even if the Philippines doesn’t rely entirely on that region, any disruption can drive prices up globally,” Top Line senior vice president and COO Brigitte Carmel Lim told The STAR yesterday.

Jetti Petroleum president Leo Bellas said this could further escalate the conflict, potentially leading to further attacks by Iran on export facilities bypassing the waterway.

“We should expect high oil prices to persist, especially as supply insecurity is heightened again,” Peter U of the University of Asia and the Pacific said.

Leviste protests

Meanwhile, Batangas 1st district Rep. Leandro Leviste, alongside 3,000 of his constituents, protested yesterday in front of the House of Representatives against so-called government moves to block the proposed suspension of the 12 percent value-added tax (VAT) on oil.

“We have had enough hearings. It is time to let every member’s vote be known. There should be separation of powers, so why is Congress allowing the Cabinet to block a vote on the VAT?” he asked, taking a swipe at Executive Secretary Ralph Recto.

“My constituents here from Batangas represent the millions of Filipinos who are paying higher prices because of the VAT yet have not received any ayuda – I hope the government will find the sense of urgency to lower the VAT on all goods and immediately suspend the VAT on oil,” he said.

“Suspending the fuel excise tax is simply not enough,” Leviste reiterated.

According to him, Congress has yet to schedule a vote on lowering the VAT because of the continuing opposition of Recto, a former finance secretary who also authored the law that raised the VAT from 10 percent to 12 percent. — Neil Jayson Servallos, Miriam Desacada, Delon Porcalla