The Department of Energy (DOE) has warned oil companies that they could face legal action if they fail to implement the mandated rollback in fuel prices starting Tuesday, April 14.
Energy Secretary Sharon Garin said firms must align their price adjustments with the DOE’s official calculations, which have already been presented to President Ferdinand Marcos Jr.. Companies that refuse to comply may be issued show cause orders and sanctioned under Executive Order No. 110.
The DOE announced significant rollbacks, including ₱20.89 per liter for diesel, ₱4.43 per liter for gasoline, and ₱8.50 per liter for kerosene.
Garin explained that the agency’s computation considered key cost components such as free-on-board (FOB) prices, foreign exchange rates, freight, market premiums, and insurance.
However, taxes and company margins were not included in the calculations.
While the rollback is expected to provide immediate relief to motorists, industry players cautioned that the price adjustment may only be temporary.
They warned that ongoing geopolitical tensions in the Middle East could disrupt supply chains and potentially force companies to halt oil purchases if price controls remain in place, raising concerns over long-term fuel availability.