DOE: Israel-Iran Tensions Unlikely to Cause Major Spike in Philippine Fuel Prices

The Department of Energy (DOE) downplayed fears of a sharp rise in local fuel prices following the latest flare-up in tensions between Israel and Iran, urging the public not to panic.

Energy Secretary Raphael Lotilla, speaking at a press conference in Taguig City, said it’s premature to speculate on the impact of the conflict, noting that oil prices remain well below the peaks seen in recent years. “Even with these incidents, prices haven’t spiked to more than $100 per barrel like before,” he said.

Reuters reported Brent crude futures jumped 9.07% to $75.65 per barrel after Israel struck Iran. While explosions were heard in Tehran, and concerns rose about disruptions in oil flow, Lotilla stressed that the situation hasn’t yet affected key shipping routes like the Strait of Hormuz.

DOE Undersecretary Alessandro Sales added that in the medium term, oil prices are expected to remain stable between $60 and $70 per barrel. He cited OPEC+ plans to gradually ease supply restrictions, which may lead to a global surplus of nearly one million barrels by next year.

Lotilla concluded by emphasizing that while the Philippines can’t control geopolitical developments, supply routes remain open and stable for now.