“`html
By Chloe Mari A. Hufana, Reporter
PHILIPPINE President Ferdinand R. Marcos, Jr. has instructed agencies to prepare for possible surges in worldwide oil rates amid escalating tensions in the Middle East, a significant oil-producing region, the presidential palace announced on Tuesday.
In addition to fuel subsidies, the government is evaluating supplementary aid packages in anticipation of price increases, Palace Press Officer Clarissa A. Castro shared during a news briefing.
She mentioned that Mr. Marcos has charged the Department of Energy (DoE) to engage with oil firms to ensure sufficient reserves and implement gradual fuel price modifications to lessen the burden on consumers.
While the conflict with Israel has not yet affected Iran’s crude oil production and export facilities, Brent futures have climbed nearly 6% due to increased risks since the close on June 12 to trade around $73.58 a barrel in Asia on Tuesday, according to Reuters.
Oil companies in the Philippines are required to maintain a minimum 30-day fuel stockpile to stabilize the local supply. If global crude prices exceed the $80 per barrel mark, fuel subsidies for public transport drivers and fishermen will be automatically activated, Ms. Castro further stated.
Motorists encountered another series of fuel price increases this week, as oil firms announced hikes on Monday, marking the fifth consecutive week of rises for gasoline, the third for diesel, and the second for kerosene.
The DoE’s Oil Industry Management Bureau previously attributed the upward trend to various global factors, such as enhanced market sentiment from improving US-China trade relations, stalled nuclear discussions between the US and Iran, and a forecasted increase in worldwide oil demand over the next 25 years.
As per the Palace, the Department of Agriculture (DA) and the Department of Transportation would also be notified to implement the necessary support programs should tensions in the Middle East escalate fuel prices.
Jetti Petroleum, Inc. President Leo P. Bellas stated that they are prepared to execute any directives from the government.
“We are observing the situation due to potential supply concerns,” he remarked in a Viber chat. “For price escalations, we are ready to follow whatever will be needed by the government for downstream oil industry participants.”
He emphasized that the company maintains “healthy product inventories” at its terminals, but any significant rise in local demand could impact supply and other oil companies.
Rizal Commercial Banking Corp., Chief Economist Michael L. Ricafort noted that the potential surge in oil prices could influence inflation.
“[There might be a] slight rise in inflation, with global crude oil prices climbing by about +$8 since June 13, 2025, [when] Israel-Iran clashes commenced,” he stated in a Facebook Messenger chat.
“[This] could also lead to an increase in the country’s trade deficit, import prices, and overall trade balance,” he added.
Inflation eased to an over five-year low of 1.3% in May, as utility costs rose at a slower rate. This brought the five-month average to 1.9%, slightly below the central bank’s 2-4% target range.
An increase in oil prices may also diminish consumers’ disposable income, Mr. Ricafort said.
Meanwhile, Management Association of the Philippines (MAP) President Alfredo S. Panlilio expressed the business community’s concerns regarding the Iran-Israel conflict.
“Naturally, it’s always a concern. Any conflict is a concern,” he told reporters during the MAP x KPMG Technology Summit on Tuesday.
“We hope there’s a resolution [to] that issue before it truly impacts everyone globally,” he added.
Additionally, the Philippine government is vigilantly observing potential fertilizer supply disruptions, as approximately 66% of the Philippines’ fertilizer imports are nitrogen-based, primarily sourced from Qatar.
Ms. Castro assured that Agriculture Secretary Francisco P. Tiu Laurel, Jr. confirmed that alternative suppliers, including those from neighboring countries like Brunei, are being evaluated to secure adequate fertilizer supplies for farmers.
The DA currently perceives no long-term threat to fertilizer availability, provided that sea routes in the region stay open, notably the Strait of Hormuz, a crucial global chokepoint positioned between the Persian Gulf and the Gulf of Oman.
Source link
“`
