Marcos: Fuel Subsidies Set as Oil Prices Poised to Rise from Middle East Conflict

President Ferdinand “Bongbong” Marcos Jr. confirmed that the Philippine government will roll out fuel subsidies to cushion the impact of expected oil price hikes triggered by escalating tensions between Israel and Iran.

Speaking to reporters on Wednesday, Marcos said, “We’re already preparing for a rise in oil prices. If the Strait of Hormuz becomes blocked, oil exports will be disrupted—so prices will definitely be affected.”

Marcos emphasized that the government will replicate past subsidy efforts, particularly for public transport drivers and others whose livelihoods are severely affected. “Just like during the pandemic, we’ll prioritize drivers and workers hit hardest,” he said.

Under current policy, fuel subsidies are automatically triggered when Dubai crude exceeds $80 per barrel. As of June 16, the price stood at $73.

The 2025 national budget includes ₱2.5 billion through the Department of Transportation for subsidies covering jeepney, bus, taxi, ride-hailing, and delivery drivers.

The President also tasked the Department of Energy (DOE) with closely monitoring the situation. DOE OIC Sharon Garin said the focus is on maintaining fuel supply stability and minimizing disruptions. The agency has advised fuel companies to implement staggered price increases to ease the impact on consumers.

While the geopolitical situation remains volatile, Marcos noted there’s currently no need for mandatory repatriation of Filipinos in the affected region.