The sinking of an oil tanker off the waters of Naujan, Oriental Mindoro caused an oil spill reaching the coasts of municipalities and provinces around the resource-rich Verde Island Passage. As local governments and agencies continue the clean-up and restoration of affected ecosystems, and as coastal communities continue to bear the loss of livelihood due to the incident nine months hence, this paper estimates the damages incurred by the oil spill through different methodologies. Primarily, we assess the livelihood losses of fisherfolks by extrapolating the values of lost income from an existing study of Naujan fishers affected by the oil spill. Through this method, we estimate that the socio-economic losses due to the sinking of the oil tanker amounts to Php 1.1 billion. Assessing the environmental damage of the incident, we extrapolated a prior study’s mean willingness to pay of non-user households to restore the fish communities in coral reefs to the four provinces affected by the oil spill and the national capital region. We estimate that the damages to the environment is around Php 40.1 billion. In total, we find that the sinking of the oil tanker caused at least Php 41.2 billion worth of damages to the ecosystem and the dependent coastal communities, which is 800% higher than the estimated total damages by the government amounting only to Php 5.1 billion.