MANILA — The Department of Energy (DOE) on Monday said that the newly secured safe passage arrangement for Philippine vessels through the Strait of Hormuz will not immediately translate into lower fuel prices, stressing that global oil market forces remain the primary driver of pump costs.
Energy Secretary Sharon Garin clarified that the agreement, reached amid heightened geopolitical tensions in the Middle East, is intended to safeguard supply routes and protect Filipino seafarers — not to bring down prices in the short term.
“This is not a perfect solution, and it does not eliminate all risks. But it is an important step that improves our position in a highly uncertain global environment,” Garin said in a statement.
She emphasized that while the development enhances supply security, it does not directly influence fuel costs, which continue to depend on international oil price movements.
“But what this does is help ensure continuity of supply and stability, especially at a time when further disruptions could significantly affect our economy and our people,” she added.
The agreement followed diplomatic engagement between Philippine officials and Iranian Foreign Minister Seyed Abbas Araghchi, during which Manila sought recognition as a “non-hostile” country to guarantee safe passage for its vessels and energy shipments.
Iran subsequently assured the Philippines of “safe” and “unhindered” transit through the strategic waterway, a critical corridor for global oil transport.
Despite sourcing petroleum products from regional suppliers such as Singapore and South Korea, Garin noted that the country remains vulnerable to disruptions in the Strait of Hormuz, where a significant portion of the world’s crude oil passes.
“Any disruption there creates a domino effect that impacts global supply — and ultimately, prices at the pump,” she said.
Garin reiterated that the agreement serves only as a short-term risk mitigation measure and does not resolve deeper structural issues in the country’s energy sector.
“This development will not immediately bring down fuel prices, nor does it resolve our long-term structural challenges in energy,” she added./PN
