DOE says no fuel rationing as diesel demand drops 20 percent

President Ferdinand R. Marcos Jr. emphasized the need to sustain relief efforts and keep the economy running as he led the UPLIFT Committee meeting to review fuel excise tax measures and ensure oil supply stability, while expanding support for OFWs and key sectors amid rising oil prices. (Courtesy: PCO)

The government said Tuesday it is not resorting to fuel rationing amid a sharp slowdown in demand triggered by record pump prices, with officials acknowledging early signs of “demand destruction” in the domestic market.

President Ferdinand Marcos Jr. yesterday presided over a meeting of the UPLIFT committee to review recommendations on possible measures to cushion the impact of rising oil prices.

No announcement, however, was made last night on whether excise taxes on fuel products will be temporarily reduced or lifted.

Mr. Marcos is expected to make two policy announcements via video today (Wednesday) instead.

The President met with key Cabinet officials, including Executive Secretary Ralph Recto, Energy Secretary Sharob Garin, Social Welfare and Development Secretary Rex Gatchalian, and Economy, Planning and Development Secretary Arsenio Balisacan, among others.

The UPLIFT (Unified Package for Livelihoods, Industry, Food, and Transport) program was created after Marcos signed Executive Order 110, declaring a state of national energy emergency on March 24, 2026, to ensure supply stability, support critical sectors such as transportation and agriculture, and shield consumers from global oil market shocks.

At the House of Representatives, 13 committees are set to hold a joint hearing today to consolidate policy proposals and align legislative action with the Executive branch’s response.

The hearing will be led by Marikina Rep. Miro Quimbo, chairman of the Committee on Ways and Means, and will include panel heads from key sectors such as energy, agriculture, appropriations, labor, transportation and trade.

For her part, Garin said the country still has sufficient fuel inventories and is not at a point where limits on consumption must be imposed.

The Department of Energy also noted withdrawals from storage facilities indicate a significant drop in usage, particularly for diesel.

Diesel demand fell by as much as 20 percent week on week as fewer vehicles took to the streets following a steep rise in pump prices, the DOE said.

Diesel prices surged to as high as P168 per liter this week after oil companies implemented increases ranging from P11.80 to P14 per liter.

“I think the observation is not really an exact calculation, but I think the estimate, just based on the withdrawals in the storage of our companies, [is] around a 20% to 25% decrease, week on week,” Garin said.

DOE Undersecretary Alessandro Sales said the Philippines is already experiencing demand destruction, a term used to describe a sustained decline in consumption due to high prices.

“Our estimate is between 20% to 40%. It’s hard to pin down because we don’t have actual data on demand or sales. But based on inventory levels, yes, at least 20% demand destruction, particularly in diesel,” Sales said.

The country’s total fuel inventory stands at 50.42 days, including confirmed deliveries scheduled until May 1.

Broken down, gasoline stocks are sufficient for 57.58 days, diesel for 47.26 days, kerosene for 106.22 days, jet fuel for 66.37 days, fuel oil for 52.26 days, and liquefied petroleum gas (LPG) for 33.10 days.

“We have issued anti-hoarding policies… only allowing a full tank for cars or allowing containers to be filled up only for limited sectors like agriculture or essential government services,” Garin said. “Are we prescribing any rationing or fuel limits? Not necessarily. We’re not at that point.”

Still, the DOE warned that global supply disruptions stemming from the Middle East conflict could have lasting effects on fuel prices and availability.

Garin said she does not expect pump prices to fall as quickly as they rose, even if tensions in the region ease.

“There is permanent damage in the structure of the international oil community,” she said.

“There’s no assurance also of the availability of supply from the Middle East because most of the structures have been destroyed by the war that’s going on. It will take months or even years for LNG to reconstruct or to rehabilitate all these structures,” she added.

At the House, lawmakers are also considering structural reforms to reduce the country’s long-term exposure to global oil price volatility.

One such proposal seeks to impose stiffer penalties on fuel hoarding and profiteering.

Parañaque 2nd District Rep. Brian Yamsuan has filed House Bill 8616, which would increase prison terms for violators to between five and 15 years, up from the current two to five years under existing law.

Speaker Faustino Dy III has directed the committees to coordinate closely with government agencies and produce concrete policy interventions to mitigate the impact of rising fuel prices.

Among those invited to brief lawmakers are Garin, Finance Secretary Frederick Go, Migrant Workers Secretary Hans Leo Cacdac, Balisacan, Foreign Affairs Secretary Ma. Theresa Lazaro, and Budget Secretary Rolando Toledo.

Officials from regulatory agencies, revenue offices and multilateral institutions are also expected to attend, including representatives from the Energy Regulatory Commission, the National Electrification Administration, the Philippine National Oil Company, the Bureau of Internal Revenue, the Bureau of Customs, the Bangko Sentral ng Pilipinas, the World Bank and the Asian Development Bank.

Quimbo said the joint hearing aims to gather critical data and craft a unified legislative response that can be implemented quickly to protect vulnerable sectors.

As for his bill, Yamsuan said: “This kind of greed and exploitation should not be allowed to go unaddressed amid the crisis besetting our countrymen.”

“Our proposed legislation seeks to substantially increase the penalties imposed under the current law owing to the abhorrent nature of these crimes,” he added.

“We hope that Congress would act swiftly and pass this bill when session resumes next month so that it would serve as a deterrent to those who profit from the misery and hardship that Filipinos face during times of volatile fuel prices,” Yamsuan said.

Yamsuan cited reports that the DOE received at least 87 complaints of excessive fuel price increases early last month and issued 55 show-cause orders to gas station operators.

Data from the Philippine National Police showed that 375 out of 14,519 gas stations nationwide have temporarily closed due to supply constraints, while nine cases involving hoarding and profiteering have already been filed.

— Alena Mae S. Flores, Charles Dantes & Maricel Cruz