As global oil prices push up fuel costs, governments in Southeast Asia are actively intervening to cushion the impact on their consumers. In contrast, the Marcos Jr administration is upholding deregulation and leaving households to absorb most of the shock, underscoring the need for a long-term solution , said research group IBON.

Fuel prices posted sharp increases for September 22–28: diesel rose by Php8.82 to Php106.37 per liter, kerosene by Php6.47 to Php130.97, and gasoline by Php4.88 to Php94.11. After three major hikes this month, cumulative increases reached Php18.31/liter (diesel), Php16.67 (kerosene), and Php15.25 (gasoline). The Department of Energy (DOE) reported that Dubai crude averaged US$99.41/barrel from August 13 to September 11, exceeding the US$80 threshold under Republic Act (RA) 12316 for possible suspension or reduction of fuel excise tax.

IBON stressed that the government should be able to control local oil prices and should not have to pass the burden of rising global prices on to consumers, as shown by other Southeast Asian countries with stronger state intervention:

Vietnam caps pump prices and taps its Price Stabilization Fund (PSF) to counter increases. As of September 17, the price of E10 RON95 was capped at 25,636 VND (Php61.65)/liter  and diesel at 29,945 VND (Php72) /liter, with the fund offsetting fuel costs by 1,250 VND (Php3.01) for biofuel and 2,000 (Php4.81) VND  for diesel. State-owned PetroVietnam oversees the entire oil and gas value chain, enabling government to set a maximum retail price and use the PSF .

  
Thailand, which also has its own state-run oil industry, uses its Oil Fuel Fund and a refinery discount. On September 18, diesel was around 40.69 baht (Php76.74)/ liter, supported by an 8.62-baht (Php16.26) subsidy and a 4-baht (Php7.54) discount. PTT is the country’s national integrated oil and gas company with the Ministry of Finance as a controlling shareholder.

Malaysia keeps subsidized prices fixed for eligible consumers. For September 17–23, the price of BUDI95 RON95 stayed at RM1.99 (Php30.59)/ liter with a subsidy of RM2.38 (Php36.59)/ liter, and diesel at RM2.10 (Php32.29)/ liter with a subsidy of RM3.17 (Php47.75) /liter. State-owned Petronas manages most upstream rights and a big portion of the value chain.

Indonesia maintains subsidized fuel prices, with Pertalite at Rp10,000 (Php35.10)/ liter and Biosolar at Rp6,800 (Php23.87)/ liter through December 2026. Subsidy outlays surged to Rp331.4 (Php1.163 trillion) as of end-August. State-run Pertamina, the country’s integrated national oil and gas company, plays a central role in implementing fuel subsidies, controls much of the supply chain, and manages strategic assets.

IBON argued that the interventions of neighboring countries may have fiscal costs but prove that governments can control fuel prices and protect consumers from price shocks.

In contrast, the Philippine government has adhered to RA 8479, or the Downstream Oil Industry Deregulation Act of 1998, which removed government control over fuel pricing and gave oil companies the free rein in dictating prices.

Instead of wielding authority under its declared national energy emergency early this year to mandate oil companies’ transparent and justifiable pricing, the Marcos administration even harbored the unabated hikes. The DOE has twice denied IBON’s repeated requests to be shown the agency’s method for assessing fuel pricing.

The government has also refused to meaningfully help millions of vulnerable consumers cope with the oil price shocks and resorted to stopgap measures like temporary tax cuts and tokenistic ayuda.

Subsidies are meaningless if they are handed out without reining in the oil companies’ overpricing. In effect, public funds merely subsidize their profits.

IBON called for rethinking deregulation and moving toward public ownership, regulation, and control of the petroleum industry. This includes stronger state role in importation and distribution, strategic reserves, and price‑stabilization mechanisms.