Philippines Shifts to Four-Day Work Week as Iran Conflict Fuels Oil Price Surge

MANILA – Queues formed at Philippine petrol stations and officials warned against hoarding on March 9, 2026, as residents raced to fill their tanks ahead of an expected surge in prices driven by the conflict involving Iran, Israel, and the United States. The fighting in the Middle East has disrupted shipping and damaged oil and gas facilities in the region, sending global oil prices soaring as countries scramble to deal with concerns over supply.

Fuel Price Increases and Government Response

Consumers in the Philippines will experience a series of staggered price increases starting March 10, according to Energy Secretary Sharon Garin, who briefed a congressional committee on the situation. The price of diesel, crucial for public buses and jeepneys, is projected to increase between 17 pesos (approximately $0.37 USD) and 24 pesos per litre. Normal petrol prices will rise by 7 to 13 pesos, while kerosene will see the most significant jump, increasing between 32 and 38.50 pesos per litre.

In response to the escalating crisis, Philippine President Ferdinand Marcos Jr. Announced a shift to a four-day work week for all government offices, effective Monday, March 16, 2026, as a measure to conserve fuel. President Marcos stated, “We are victims of a war that is not of our choosing,” adding, “But we control how we will protect the Filipino people.”

Market Reactions and Concerns

At a petrol station in Metro Manila, AFP journalists observed long queues of motorcycles, taxis, and private cars as customers sought to fuel up before the price hikes took effect. Enrico Guda, a petrol station attendant, reported that the station was handling double its normal daily volume, with lines forming 24 hours prior. Francis Aranda, a university student, expressed concern about the impact on his budget, stating he planned to use half his weekly fuel allowance to mitigate potential future increases.

Ferry Fare Hikes and Excise Tax Review

The impact extends beyond road transport, with ferries – a vital mode of transportation in the archipelago nation of 116 million people – also increasing fares. Starlite Ferries announced a 25% increase for both passengers and cargo, effective March 10. Montenegro Shipping Lines will raise prices by 10% to 20% starting March 23.

President Marcos has urged Congress to authorize a reduction in excise taxes on petroleum products if the price of crude oil exceeds US$80 per barrel. His administration is expected to formalize this request on March 9.

Global Oil Prices and Regional Impact

As of March 9, 2026, both West Texas Intermediate (WTI) and Brent crude oil prices had surged above US$110 per barrel. The conflict in the Middle East is causing widespread disruption, including airspace closures, blocked shipping through the Strait of Hormuz, and canceled flights. The Philippines, which imports most of its crude oil from the Middle East, is particularly vulnerable to these disruptions.

OFW Concerns and Repatriation Efforts

The conflict also poses a threat to the safety and job security of over two million Filipinos working in the Middle East. The Philippine government has expressed concern and called for dialogue to de-escalate the situation. While no Filipinos have been reported harmed as of March 9, Philippine embassies in the region are on full alert. The Department of Migrant Workers is prepared for mass repatriation if necessary, having identified land exit points for Filipinos in the region.

Police Monitoring and Hoarding Prevention

The Philippine National Police has been instructed to inspect petrol stations for profiteering and hoarding, with Brigadier-General Randulf Tuano announcing a briefing on March 9 to gather evidence of any illegal activity.