I remember when filling up the L200 with diesel was, well… manageable.

And now?

Diesel has hit over a hundred pesos per liter in some parts of the Philippines.

Some gas station digital boards were not even desined to show three-digit prices. They literally had to write the prices on pieces of paper and tape it to the board. That’s how bad things have gotten.

Since I operate a diesel engine vehicle, I wanted to understand why diesel is more expensive than gasoline all of a sudden?

Now, if both diesel and gasoline come from the same source which is crude oil, shouldn’t hey be priced the same?

So I did some reading, and here’s what I found out.

Crude oil is basically a thick, dark liquid pulled up from deep underground. It’s sometimes called petroleum. On its own, crude oil isn’t very useful. It has to go through a process called refining where it gets separated into different products.

Think of it like this… crude oil is like a bunch of different ingredients all mixed together in one pot. The refinery is the kitchen where they separate everything out. And out of that refinery, you get gasoline, diesel, kerosene, jet fuel, LPG, and lots of other stuff.

The difference between gasoline and diesel comes down to the molecules inside them and how they burn.

• Gasoline is lighter, burns faster, and has a lower boiling point. It’s used in most regular cars and motorcycles. The engine ignites it using a spark plug.
• Diesel is heavier and denser. It has more energy packed into every liter. Instead of a spark plug, diesel engines use compression to ignite the fuel. The air inside the cylinder gets so compressed it heats up, and that heat ignites the diesel.

This is why diesel engines are generally more fuel efficient than gasoline engines. You get more energy per liter. That’s why trucks, buses, jeepneys, cargo ships, fishing boats, and heavy equipment mostly run on diesel.

Why Diesel is So Important to the Philippines

If you think about it, almost everything that moves in this country runs on diesel. Buses, jeepneys, trucks, cargo ships, fishing boats, construction equipment, farm tractors, backup generators… all of them use diesel. If diesel becomes expensive or unavailable, basically the whole economy slows down.

This is especially true here in Davao City. We’re a major hub for agricultural products like durian, banana, and cacao.

All of that gets moved around in trucks and cargo vehicles that run on diesel. The moment diesel prices go up, the cost of transporting goods goes up. And when transport costs go up…

…so does the price of everything in the market.

Even your dried fish.

Diesel is also used to power generators in areas without stable electricity. In remote areas of Davao region, some communities depend on diesel-powered generators for electricity.

When diesel prices double, those communities get pushed toward brownouts.

How Diesel Powers the Economy: A Quick Breakdown

Sector	How Diesel is Used	Impact When Prices Rise
Transportation	Trucks, buses, jeepneys, cargo ships	Higher fares and delivery costs
Agriculture	Farm equipment, irrigation pumps, transport of produce	Food prices increase
Fishing Industry	Fishing boats and vessels	Seafood prices go up, fishermen lose income
Construction	Heavy equipment, cranes, generators on site	Project costs increase, delays
Power Generation	Backup generators, off-grid communities	Electricity costs rise, risk of brownouts
Manufacturing	Factory machinery and logistics	Production costs rise, goods become pricier

So Why is Diesel More Expensive Than Gasoline Right Now?

Okay so here’s the part that really got me.

For a very long time, diesel was actually cheaper than gasoline in the Philippines. Way back in 1995, gasoline cost P7.06 per liter while diesel was only at P4.96. (Why do I remember this? Because in 1995, I was already driving.) In 2025, gasoline was still slightly more expensive at P57.85 per liter versus P54.82 for diesel.

But now… diesel has completely overtaken gasoline in price. And the culprit is a combination of things. Some of it is structural, meaning it’s been building up for a while. Some of it is what’s happening right now in the world.

Reason 1: Global Demand for Diesel is Very High

Diesel is the world’s workhorse fuel. Every container ship crossing the ocean, every delivery truck going from a warehouse to a store, every construction site in every country… most of them run on diesel. That demand is massive and it keeps growing.

And here’s something that caught my attention: even the rise of electric vehicles is affecting diesel demand in a weird way.

As more people choose EVs or hybrids for personal cars (the kind that use gasoline), the gasoline demand drops a little. But diesel demand? Trucks and cargo ships aren’t switching to electric anytime soon.

So diesel demand stays high or even grows while gasoline demand gradually shrinks.

Reason 2: The War in Iran and the Closure of the Strait of Hormuz

This is the big one. And this is what changed everything in February and March of 2026.

On February 28, 2026, the United States and Israel launched joint airstrikes on Iran. The stated reason was to stop Iran’s nuclear program after diplomatic talks failed. Iran responded with missile and drone strikes on US and Israeli targets, as well as Gulf states that were hosting US forces.

As part of its retaliation, Iran effectively closed the Strait of Hormuz.

Now if you don’t know what the Strait of Hormuz is… imagine a very narrow water passage, like a bottleneck, between Iran and Oman. About 20 million barrels of crude oil and oil products passed through it every single day in 2025. That’s roughly 20 percent of the world’s entire oil supply going through one narrow channel.

Iran shut it down.

The International Energy Agency called it the largest supply disruption in the history of the global oil market. Not the biggest in recent years.

The biggest ever. And because diesel is the fuel of global shipping and industry, and because it’s already in tight supply globally, it got hit the hardest.

What the War Did to Prices in the Philippines

Since the war started on February 28, local diesel prices in the Philippines surged by as much as P49.35 per liter compared to P31.50 for gasoline, during the period of March 3 to 17 alone. By mid to late March, diesel had already breached P100 per liter in Metro Manila and other major areas, with reports of prices reaching P114 per liter at some stations.

The Philippines has been hit harder than most of its neighbors in Southeast Asia, partly because the government does not subsidize or control diesel prices the way some other countries do. Global trends are felt directly at our fuel stations.

Country	Diesel Price Change (Feb to Mar 2026)	Notes
Philippines	+99.70% (approx. P67.25 to P134.30/liter)	One of highest in SEA, no fuel subsidy
Vietnam	+80.6%	Government-mandated price caps
Cambodia	+80.2%	Significant impact on rural transport
Malaysia	+58.2%	Government subsidies cushion impact
Singapore	+42.0%	Highest absolute price but higher wages
Thailand	+3.6%	Strong government subsidy on diesel
Indonesia	Modest increase	Heavy government fuel subsidy program

(Source: PhilSTAR Life, March 2026)

How the War in Iran is Affecting the Entire World

This isn’t just a Philippines problem. The conflict in the Middle East has sent shockwaves across the entire global economy. And the effects are being felt everywhere, from fuel stations in Davao to factories in Europe to fishing villages in Southeast Asia.

The Strait of Hormuz: The World’s Most Important Chokepoint

The Strait of Hormuz handles about 20 percent of global oil and about one-fifth of global liquefied natural gas (LNG) trade. When Iran closed it, supply chains around the world started to buckle.

Oil prices surged more than 25 percent since the start of the war, with Brent crude jumping to nearly $120 per barrel. Some analysts have warned prices could reach $150 per barrel if the conflict continues. Major oil producers like Saudi Arabia, Kuwait, Iraq, and the UAE had to suspend shipments of enormous amounts of oil because their storage tanks were filling up and tankers couldn’t leave.

Europe in Crisis

Europe was already going into the 2025 to 2026 winter with historically low gas storage levels, at only about 30 percent capacity.

When the war started and Qatar declared force majeure on its gas exports (after Iranian drone attacks), European gas prices nearly doubled in a matter of days.

The European Central Bank had to postpone planned interest rate reductions and raised its inflation forecast for 2026.

Asia Takes a Heavy Hit

China, India, Japan, and South Korea together account for nearly 70 percent of the oil shipments that used to flow through the Strait of Hormuz.

With that chokepoint closed or severely disrupted, these economies are feeling major pressure. India, with thinner fuel reserves and heavy reliance on Middle Eastern crude, is especially vulnerable.

Higher energy costs are feeding inflation, weakening the rupee, and threatening economic growth.

The Philippines Declares a State of Emergency

President Ferdinand Marcos Jr. declared a state of national energy emergency in March 24, 2026, a first for the country.

He signed a law allowing him to temporarily suspend excise taxes on fuel when crude oil prices rise above a certain level.

If fully suspended, the excise tax on diesel (P6 per liter) and gasoline (P10 per liter) would offer some relief, though critics argue much more needs to be done.

Thousands of transport workers marched to the Presidential Palace in Manila, demanding price controls, scrapping fuel taxes, and tighter government regulation.

Many jeepney and truck drivers were forced to stop operating because they could no longer afford to fill their tanks.

Diesel vs Gasoline: A Simple Pros and Cons

Diesel

Pros	Cons
More fuel efficient, more km per liter	More expensive right now due to global crisis
Better for long distances and heavy loads	Diesel engines are generally more expensive upfront
More energy per liter than gasoline	Diesel price spikes hit hardest during global disruptions
Better for trucks, buses, cargo vehicles	Diesel exhaust has more particulate matter (bad for air quality)
Engines tend to last longer with proper care	Harder to find alternatives if diesel supply is disrupted

Gasoline

Pros	Cons
Usually cheaper than diesel under normal conditions	Less fuel efficient than diesel (fewer km per liter)
Gasoline engines are widely available and cheaper to buy	Price is also heavily affected by global oil events
Price increases have been less severe than diesel in this crisis	Still dependent on imported crude oil
More petrol stations offer gasoline than diesel alternatives	Smaller cars may offer less utility for cargo and transport
EV alternatives for gasoline cars are more developed	Less energy per liter compared to diesel

What Can We Do? Controlling the Impact of Fuel Shortages

Ok so this is the part where I usually just throw my hands up and say ‘bahala na si Batman.’ But actually there are real things that individuals, businesses, and the government can do to lessen the impact of fuel price spikes like this one.

What Individuals Can Do

• Carpool or share rides whenever possible. If you and three officemates are going to the same area in Davao, take one car instead of three.
• Use public transport for shorter trips. Yes, jeepney prices went up too, but you’re still splitting that cost with other passengers.
• Walk or bike for short distances. Easier said than done when it’s 35 degrees in Davao, I know. But even once or twice a week makes a difference.
• Combine errands into one trip. Instead of driving out three times a day, plan your route and do everything in one go.
• Reduce idling. Turning off your engine while waiting uses less fuel than letting it run.
• Consider an EV or e-bike for your next vehicle purchase. More on this in a bit…

What the Government Can Do

• Suspend or reduce excise taxes on fuel, especially diesel, during periods of crisis. (This is already being discussed in Congress.)
• Provide targeted subsidies for jeepney drivers, fishermen, and other transport workers who rely heavily on diesel.
• Accelerate the transition to renewable energy so that the country is less dependent on imported fossil fuels.
• Invest in alternative fuel infrastructure such as EV charging stations, LPG-converted transport, and solar power in off-grid areas.
• Maintain strategic fuel reserves so that price spikes don’t immediately translate to supply shortages.
• Require oil companies to be transparent about pricing and profit margins during crisis periods.

What We Can Do to Help Stop the War (or at Least Its Effects)

This might sound like a stretch, I know. We’re just people in Davao. What can we do about a war happening thousands of kilometers away?

More than you’d think, actually.

• Support peace advocacy. Organizations calling for a ceasefire and diplomatic resolution deserve our voice, even if just through social media.
• Reduce consumption of fossil fuels. The less the world depends on oil, the less geopolitically powerful oil-producing regions become. Every EV purchase, every solar panel installed, every bike trip to the market contributes to that shift.
• Support local food and goods. Buying produce directly from local Davao farmers reduces the transportation costs embedded in the price of food.
• Stay informed and share accurate news. Panic-buying and hoarding worsen fuel shortages. Informed communities behave differently from panicked ones.
• Vote for leaders who prioritize energy independence and renewable energy policy. The Philippines’ vulnerability to global oil shocks is partly a policy choice.

I Recommend: Get an EV or Alternative Transportation

I’ve written about EVs quite a bit on this site. And this fuel crisis has honestly made me think even harder about it.

Look at what’s happening. Every time there’s a conflict somewhere in the Middle East, our fuel prices shoot up.

Our jeepney drivers stop working.

Our food gets more expensive.

Our fisherfolk can barely afford to go out to sea.

All because we’re dependent on oil that comes from the other side of the planet.

An electric vehicle… whether it’s a car, a scooter, a motorcycle, or even an e-bike… removes you from that equation.

You charge it at home.

You pay for electricity, which in Davao can be generated from hydroelectric power, solar, or other local sources.

You are not directly affected by what’s happening in the Strait of Hormuz.

Now I know not everyone can afford an EV right now, especially with prices what they are. But even smaller steps help…

• An e-bike or electric scooter like the NWOW ERV2 (which I’ve written about before) costs less than Php 45,000 and has a range of 60 to 70 km per charge. That’s enough for most daily trips around Davao City.
• An electric tricycle is perfect for short-distance ferrying of goods or passengers without spending on diesel.
• Even switching from a large diesel SUV to a smaller, more fuel-efficient gasoline car can reduce how much you spend on fuel every month.
• Hybrid vehicles, like the BYD Shark I wrote about recently, offer the best of both worlds: electric driving for city use and a gasoline engine as backup.

The world is changing. The Iran war is just the latest reminder of how fragile our dependence on fossil fuels really is. The sooner we start moving away from it, the more protected we are from the next crisis.

And there will be a next crisis. There always is.

Final Thoughts

So why is diesel more expensive than gasoline right now? The short answer is: because diesel is the fuel that runs the world’s industry and shipping, and a war just knocked out 20 percent of the world’s oil supply in one go.

It’s not just about us here in Davao.

It’s about a global system that has been heavily reliant on oil for over a century, and what happens when that supply gets disrupted. The Philippines feels it more than most because we don’t subsidize fuel and we import almost all of our crude oil.

But knowing why it’s happening helps. Because knowing the problem is the first step to doing something about it. Even if that something is just choosing to take the bike to the market this Saturday instead of driving.

Every little bit helps.

Stay informed. Stay safe. And if you can, go electric.