Probe looms over fuel prices

A Senate inquiry may be launched if local fuel prices fail to mirror the recent drop in global oil costs, Senator Sherwin Gatchalian warned Thursday, raising concerns over possible inconsistencies in pump price adjustments.

Gatchalian said regulators are closely tracking domestic price movements following reports that global crude prices have eased, stressing that any disconnect could trigger congressional action.

“Kapag tumaas ang presyo sa international market, kaagad tumataas dito. Pero kapag bumababa, parang mabagal ang pagbaba. Hindi pwedeng tanggapin lang natin ito (When prices rise in the international market, they immediately increase here. But when they go down, the decrease seems slow. We cannot just accept this),” he said in a radio interview.

The senator pointed to the so-called “rocket and feather” effect—where prices spike rapidly but decline slowly—as a possible indicator that consumers are not fully benefiting from lower global oil prices.

He urged the Department of Energy to ensure that adjustments at the pump are aligned with international trends, warning that sanctions could be imposed on companies found to be non-compliant.

“Kapag hindi bumaba, dapat parusahan. Iimbestigahan namin ito (If prices do not go down, there should be penalties. We will investigate this),” he said.

Gatchalian noted that global oil prices have reportedly fallen from over $110 per barrel to around $93 per barrel amid easing geopolitical tensions, but the expected relief has yet to be fully reflected in domestic fuel costs.

He also highlighted structural limitations under existing oil deregulation policies, which he said restrict the government’s ability to scrutinize pricing mechanisms. To address this, the lawmaker has filed a bill seeking to restore greater state oversight on fuel pricing components.

The senator added that the declaration of a national energy emergency could empower the executive branch to step in more decisively, including measures to enforce fair pricing in the local market.