71 Gas Stations Flagged For Overpricing, Early Hikes

Seventy-one gas stations have been found violating fuel price regulations amid the global oil crisis, the Department of Energy said on Monday, March 9.

Of 87 gas stations inspected, the DOE said 71 committed violations, including selling overpriced fuel and changing prices ahead of the mandated day.

Show-cause orders have been issued to 55 gas stations that adjusted fuel prices before today, March 10, Energy Secretary Sharon Garin said.

In Pasig and Quezon City, Energy Undersecretary Felix William Fuentebella issued show-cause orders to three gas stations.

“We are asking consumers, mayors, the police – everyone – to report any unauthorized adjustments,” Fuentebella said at a press briefing.

A branch of Global Oil Hauz in Pasig is selling diesel at P79.93 per liter, up from P51.98 – a 54-percent increase.

Diesel at X-Finity’s branch in Fairview, Quezon City is sold at P71 per liter, up from P49.76. Its manager explained that the owner purchased more expensive supplies.

Metro Oil’s branch in North Fairview, Quezon City is selling diesel at P72 per liter, up from P49.75 – an increase of 44 percent. The manager declined to comment.

Under the DOE’s department circular 2019-05-0008 upheld by the Supreme Court in 2024, price adjustments must be made every Tuesday and remain effective for seven days.

The circular mandates oil firms to provide a detailed breakdown of the cost components of their products.

Staggered fuel price hikes begin today, with oil companies raising the cost of diesel between P17.50 and P24.25 per liter and gasoline between P7 and P10.20 per liter.

Monitoring

The DOE has requested aid from the Philippine National Police (PNP) to monitor gas stations and prevent profiteering and hoarding.

PNP spokesman Brig. Gen. Randulf Tuaño said police visibility at gas stations has intensified.

Violations will be determined by the DOE based on photos and videos submitted by police officers on the ground.

“Intelligence units monitored warehouses for possible hoarding and other similar illegal activities. We would arrest anyone caught illegally withholding supply to spike prices,” PNP chief Gen. Jose Melencio Nartatez Jr. said.

The PNP coordinated with the Department of Trade and Industry and local government units to intensify spot checks on retailers and ensure compliance with the DOE’s “no price change” directive that remains effective until today, March 10.

The public can report violations through the eGovPH app.

Erring gas stations will have their certificate of compliance revoked, which is “tantamount to closure of the establishment,” Fuentebella warned.

The Bureau of Customs, for its part, will inspect depots of oil companies to prevent hoarding and ensure there is no artificial shortage of fuel.

Historic price hikes

Fuel prices are jumping by up to P38.50 per liter this week, marking the largest single-week adjustment to date, with oil companies rolling out staggered hikes over two to seven days.

Gasoline prices are set to climb by P7 to P13 per liter, diesel by P17.50 to P24.25 and kerosene by P32 to P38.50, depending on the fuel station, Garin said.

Shell will implement a per-liter price hike of P8.75 for gasoline, P24.25 for diesel and P36 for kerosene, with adjustments staggered starting today until Thursday, March 12.

Petron will follow a similar schedule, adjusting its prices by P8.80 per liter for gasoline, P19.20 for diesel and P32 for kerosene.

At Caltex stations, gasoline, diesel and kerosene prices will rise by P7, P17.50 and P38.50 per liter, respectively, with increases being implemented gradually over the next seven days.

Seaoil will gradually roll out price increases today and tomorrow, March 11, with gasoline going up by P8.80 per liter, diesel by P21.85 and kerosene by P35.95.

“The price is not regulated by the DOE because of the Oil Deregulation Law. We do not dictate to the companies what price they will charge the public,” Garin clarified.

Price computation

In an interview with “Storycon” on One News on Monday, former energy secretary Alfonso Cusi pushed for the public disclosure of oil companies’ computation of fuel prices.

“We should see the breakdown of oil prices,” he said.

Cusi recalled industry players pushing back after he advocated for such a policy.

Defending the practice of immediately applying a price increase even on oil reserves, Cusi said oil companies need additional funds to procure oil at higher cost.

Cusi recommended a strategic reserve to cushion the impact of price surges in the world market.

Despite the deregulated nature of the industry, Cusi said the government can still pursue those committing abuses, such as profiteering.

“That can be proven because everything is quantifiable,” Cusi said. “What we need is to strengthen the monitoring.” – With Mark Ernest Villeza, Rainier Allan Ronda, Evelyn Macairan, Janvic Mateo, Brix Lelis