Gas prices drop PHP1-PHP2/liter starting July 1

Local pump prices in the Philippines are expected to decrease starting July 1, with gasoline dropping by PHP1.40 per liter and diesel reducing by PHP1.80 per liter following easing tensions in the Middle East.

Major oil companies including Shell Pilipinas, Seaoil, Caltex, Cleanfuel, Petrogazz, Jetti Petroleum, and PTT have announced these price reductions effective from early Tuesday morning.

Kerosene prices will also decrease by PHP2.20 per liter starting July 1.

Public utility vehicles are already benefiting from discounts starting June 28, with plans to extend these benefits throughout the third quarter of 2025.

The Department of Energy (DOE) predicts that if Israel and Iran sustain their ceasefire, further price decreases between PHP4 and PHP5 per liter could occur in the next few weeks.

The government has allocated around P2.5 billion for fuel subsidies under the 79th General Appropriation Act (GAA) and another PHP76 million for farmers and fisherfolk.