Philippines’ fuel shock exposes limits of deregulated oil market

The Philippines was hit by a sharp fuel-price shock on Tuesday, with pump costs surging after the escalating conflict involving Iran pushed global oil prices higher, in what could become one of the country’s steepest weekly increases in years.Consumer groups say the surge is exposing a deeper problem: a deregulated oil industry introduced in the late 1990s that allows companies to set pump prices in line with global markets, leaving the government with fewer tools to intervene than many of its regional peers.Critics say this has left households and commuters to shoulder the rising costs, even as officials promote conservation measures that advocacy groups describe as temporary fixes.Oil retailers on Tuesday began implementing price increases, which are expected to be rolled out in stages throughout the week.The Department of Energy (DOE) said the total increases could reach between 17 and 24 pesos (30 to 40 US cents) per litre, as it monitored gas stations nationwide following complaints of alleged hoarding and profiteering in the days before the scheduled adjustments.Motorcyclists queue to refuel at a petrol station in Quezon City, the Philippines, on Monday. Photo: XinhuaOfficials had last week reminded retailers that price changes could only take effect on Tuesday.