Philippines bracing for oil, fertilizer price shocks from Middle East crisis

Presidential Press Officer Claire Castro. Screengrab from RTVM/Facebook

MANILA, Philippines — The government is prepared to mitigate the impact of the ongoing Middle East crisis on oil and fertilizer prices in the Philippines, a Palace official said on Tuesday.

Palace Press Officer Claire Castro said in a briefing that President Ferdinand Marcos Jr. has ordered close monitoring of the conflict between Iran and Israel so that the government could promptly provide assistance to motorists in case of oil price hikes.

“Sa kasalukuyan po, ang oil companies po ay required na magkaroon ng 30-day inventory of fuel. At kapag po tumaas ang presyo ng crude oil ng mahigit sa 80 US dollars per barrel, ang ayuda for fuel for public transport and fisherfolk ay mati-trigger po,” she said.

(At present, oil companies are required to maintain a 30-day inventory of fuel, and if the price of crude oil exceeds $80 per barrel, fuel assistance for public transport and fisherfolk will be triggered.)

Aside from the fuel subsidy, Castro said the Department of Energy may coordinate with oil companies to maintain inventory levels to help manage price adjustments.

Oil companies have announced a major pump price hike of almost P2 per liter, effective June 17.

READ: Close to P2/liter hike in oil prices set for June 17

Helping farmers

Meanwhile, the Department of Agriculture (DA) is ready in case the situation in the Gulf region affects the price of local fertilizer.

This concern was raised by House Committee on Ways and Means Chairperson and Albay Rep. Joey Salceda, who noted that 66 percent of the country’s nitrogen-based fertilizer is imported, with Qatar being one of the sources.

“Kung mangyayari man po ito, maaari po tayong kumuha sa ibang parte ng mundo na malapit sa atin katulad ng Brunei,” Castro said.

(If this happens, we can source from other parts of the world that are near us, such as Brunei.)

READ: DMW, OWWA release hotlines to aid Filipinos amid Mideast tension

“Nakikita rin ng DA na hindi ito magdudulot ng pangmatagalan na problema lalong-lalo na po kung hindi naman isasara ang sea lanes,” she added.

(The DA also sees that this will not cause a long-term problem, especially if the sea lanes are not closed.)

On Friday, Israel launched attacks against Iran, killing top military commanders and nuclear scientists and striking military bases, nuclear sites, and residential areas across the country.

In response, Iran fired back and called Israel’s attacks a “declaration of war.”